Analysis:



- Marginal Utility (MU) is the additional satisfaction or benefit that a consumer derives from consuming one more unit of a good or service.
- In this case, Pappu's MU of 1 rupee is 8 Rs. This means that Pappu gets 8 units of satisfaction from consuming an additional burger.
- The MU of 1 rupee is a measure of the additional satisfaction Pappu gets from spending an extra rupee on a burger.



- The Law of Diminishing Marginal Utility states that as a consumer consumes more and more units of a good or service, the additional satisfaction or benefit derived from each additional unit decreases.
- In other words, the MU of each additional unit decreases as consumption increases.



- Pappu has already consumed 5 burgers, and the cost of each burger is Rs. 50.
- To determine whether Pappu should consume more burgers or stop, we need to compare the additional benefit (MU) with the additional cost.



- Pappu's MU of 1 rupee is 8 Rs. This means that the additional benefit or satisfaction he gets from spending an extra rupee on a burger is 8 units.
- If Pappu consumes one more burger, he will get an additional satisfaction of 8 units.



- The cost of each burger is Rs. 50.
- If Pappu consumes one more burger, the additional cost will be Rs. 50.



- To compare the additional benefit and the additional cost, we need to determine the MU per rupee for the additional burger.
- The MU per rupee is calculated by dividing the MU by the cost.
- In this case, the MU per rupee for the additional burger is 8/50 = 0.16.



- Since the MU per rupee for the additional burger is 0.16, it means that Pappu is getting 0.16 units of satisfaction for each rupee spent.
- This is less than the MU of 1 rupee, which is 8 units.
- Therefore, it is not advisable for Pappu to consume more burgers as the additional benefit (0.16 units of satisfaction per rupee) is less than the MU of 1 rupee (8 units of satisfaction).
- Pappu should stop consuming more burgers at this point.

Conclusion:

Based on the analysis, Pappu should stop consuming more burgers as the additional benefit he receives from each additional rupee spent on a burger is less than the MU of 1 rupee. The Law of Diminishing Marginal Utility suggests that the satisfaction derived from each additional unit decreases as consumption increases. Therefore, it is not economically efficient for Pappu to continue consuming more burgers.

He consume more burger unless the MU become lesser than rupee