Complete the following table of Scout’s utility from drinking cans of soda and answer the questions below.

Instructions: 

If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.

Cans of Soda	Total Utility	Marginal Utility
0		0
1		13
2	28	15
3	38
4		7
5		5
6	45
7	42

a. At what point does marginal utility begin to fall?

Marginal utility falls with the (Click to select)3rd4th5th7th6th2nd1st soda.

b. Will Scout consume the 7^th can of soda? Explain your answer.

	No, because it is too expensive.
	No, because it reduces total utility.
	Yes, because Scout is a utility maximizer.

c. True or false? Scout will be following the utility-maximizing rule by consuming 2 cans of soda. Explain your answer.

	True. Scout is following the utility-maximizing rule because marginal utility is at its maximum.
	False. Scout is not following the utility-maximizing rule because he can gain more utility by consuming the 3rd can of soda.
	Uncertain. We don't know whether Scout is following the utility-maximizing rule without more information.

Answer rating: 100% (QA)

Marginal utility is define as the change in total utility due to change in one u... View the full answer