Question

What is your favorite food? If this is your favorite food, should you consume as much of it as possible? Discuss the economic concepts that may apply to this situation.

Answer 1

My favourite food is Pizza. I should not consume as much of it as possible due to diminishing marginal utility. I get the highest utility from consuming one pizza. After second pizza i get happy but additional utility from second pizza is less than utility from first pizza. When i consume third pizza, i might get positive total utility but utility from the third pizza will be a lot less because i value it less now. Thus my additional utility from consuming additional pizza will decrease.