Answer to Question #298071 in Macroeconomics for shanks

Question #298071

Is it possible to consume so much of the same good that it turns into a bad? If so, give an example


1
Expert's answer
2022-02-15T16:01:27-0500

Yes. Looking at the law of diminishing marginal utility, the marginal utility of each additional portion of food you consume declines (Kauder, 1965). For example, if you are hungry, taking the first pizza has the highest utility. After that, the following pieces will be increasing consumption with a decline in utility. Therefore if you take many pieces of pizza, the high calories will be bad for your health since your body starts building fats that would cause obesity.


References

Kauder, E. (1965). A history of marginal utility theory.



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