Each scoop of ice cream costs $5. Your benefit associated with each scoop decreases with each additional scoop because you start to get a stomach ache. How many scoops of ice cream should you eat if your marginal benefit for each scoop is as follows: $24, $16, $7, $3, $0?

The marginal benefit is the amount a consumer would be willing to pay for an additional unit of a product and it tends to decrease when the consumption is higher. According to this and considering that the excerpt indicates that the ice cream costs $5, you should eat three scoops of ice cream because at this point your marginal benefit is $7 and the cost is $5 but if you eat an additional scoop, your marginal benefit is $2 which is the maximum amount you would be willing to pay but the cost is $5.

JelenaHadid JelenaHadid · Answer 2 · 2024-02-19T19:29:07-05:00

Final answer:

To maximize your benefit based on decreasing marginal benefit, you should eat 2 scoops of ice cream.

Explanation:

To determine how many scoops of ice cream you should eat based on the decreasing marginal benefit, you need to compare the benefit of each additional scoop to the cost. Let's analyze the scenario:

Let's assume you start with 0 scoops and the benefit of the first scoop is $24. Since the cost of each scoop is $5, the marginal benefit is greater than the cost, so you should eat 1 scoop.
For the second scoop, the benefit is $16. Again, the marginal benefit is greater than the cost, so you should eat another scoop, totaling 2 scoops.
The benefit for the third scoop is $7. Here, the marginal benefit is less than the cost, so you should stop at 2 scoops.

Therefore, you should eat 2 scoops of ice cream to maximize your benefit based on the given data.

Learn more about marginal benefit here:

https://brainly.com/question/33643165

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