Savita loves eating chocolates. Price of one chocolate is Rs. 40. She had already eaten 2 chocolates. Her Marginal Utility from 2 chocolates is 200 utils. If Marginal utility of money for her is 2, should she eat one more chocolate. Give valid reason for your answer.
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yes now she can eat one more chocolate because TU is starting to increase and until it reaches highest point the MU will be positive.
Savita can take chocolates before the highest level of TU.If TU reaches highest then MU will be 0 and further TU will decrease so MU will goes negative.like the pic.now she can take 98 chocolates more 200÷2=100....100_2=98..so now he can take one more chocolate.
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