Reference no: EM131877155

Poppy likes to eat hot peppers. A co-worker brought Poppy a jar of extremely hot ghost peppers. The graph illustrates Poppy's total for these peppers.

Use the curve to answer the question and assume that Poppy, like all rational actors, seek to maximize her utility

a) Poppy asks if she should consume 7 peppers. What would be your advice be?

-there is not enough information in the problem to give Poppy good advice

-Consume fewer than 7 peppers, you'll be better off.

-You are consuming optimally, way to go!

-Consume more than 7 peppers, you'll be better off

b) Marginal utility becomes negative with the consumption of which pepper?

-with the consumption of the 8th pepper.

-with the consumption of the 5th pepper.

-with the consumption of the 1st pepper.

-with the consumption of the 6th pepper.