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    Marginal Utility in Real Life

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    Use the concept of marginal utility to explain the following: Newspaper vending machines are designed so that once you have paid for one paper; you could take more than one paper at a time. But soda vending machines, once you have paid for one soda, dispense only one soda at a time.

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    This is a good question. Let's say that the utility for the first can of soda is worth $5 to you(if you're really thirsty) so you if one soda costs $1, you are willing to buy that first can. Let's then say after you're done with the first can you're now willing to only spend $3 since you're not so thirsty but you will still buy that second can because ...

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    The solution discusses marginal utility in real life.