(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Speaker)
Now that we have calculated Brenda's marginal utility for bagel consumption, assuming she consumes only two cups of coffee, what patterns do you notice? Does Brenda have increasing, diminishing, or constant return to bagel consumption?
(Description)
The right table from the previous slide is shown.
The following text is written above the table:
Using your table from part A, assume Brenda consumes two cups of coffee. Does her marginal utility exhibit increasing, diminishing, or constant returns?
(Speaker)
The easiest way to answer this question is to look directly at marginal utility. You will notice that as Brenda increases her consumption of bagels, her marginal utility decreases. This is the definition of diminishing returns. A second way to answer this problem, is to graph marginal utility with respect to the quantity of bagels.
(Description)
The coordinate plane with Marginal utility per bagel as a dependent variable and Quantity of bagels as an independent variable is drawn below the table.
The Marginal utility per bagel is measured from 0 to 20 utils on the y-axis. The Quantity of bagels is measured from 0 to 5 on the x-axis.
(Speaker)
In the graph, we have plotted the first point that corresponds with 20 utils and one bagel.
(Description)
The corresponding data in the second row of the table is briefly highlighted.
A point with coordinates, 1 and 20, is plotted on the coordinate plane. It is labeled as 1 bagel, 2 cups of coffee.
(Speaker)
As we add in more data points, it will be obvious that marginal utility is decreasing.
The second bagel provides eight additional utils.
(Description)
The corresponding data in the third row of the table is briefly highlighted.
A point with coordinates, 2 and 8, is plotted on the coordinate plane. It is labeled as 2 bagels, 2 cups of coffee.
(Speaker)
As Brenda consumes her third bagel, her marginal utility decreases to six utils.
(Description)
The corresponding data in the fourth row of the table is briefly highlighted.
A point with coordinates, 3 and 6, is plotted on the coordinate plane. It is labeled as 3 bagels, 2 cups of coffee.
(Speaker)
Her marginal utility decreases further with the fourth bagel, four utils.
(Description)
The corresponding data in the fourth row of the table is briefly highlighted.
A point with coordinates, 4 and 4, is plotted on the coordinate plane. It is labeled as 4 bagels, 2 cups of coffee.
(Speaker)
Connecting the dots shows the relationship is downward sloping. Brenda has diminishing returns to bagel consumption.
(Description)
All four points are connected with a line which has the downward slope. The line is labeled as Marginal utility is decreasing as Brenda consumes more bagels.