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Makiah Bouchee
on Dec 08, 2024

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For Adrian, the marginal utility of the 5th energy drink in a day is positive and the marginal utility of the 6th energy drink in a day is zero. This

A) implies that Adrian's demand curve for energy drinks per day will become upward sloping at 6 energy drinks per day.
B) is impossible because each additional unit of consumption of any good must provide positive marginal utility.
C) implies that at a zero price Adrian's demand curve will intersect the quantity axis at 6.
D) implies that Adrian maximizes utility by consuming 5 energy drinks per day.

Marginal Utility

The increased gratification or utility derived from the consumption of an extra unit of a good or service.

Energy Drink

A type of beverage containing stimulant compounds, usually caffeine, that is marketed as providing mental and physical stimulation.

Utility

Describes the complete fulfillment derived from the use of a product or service.

  • Comprehend the principle of marginal utility and its impact on consumer choices.
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Gursimran BajwaDec 15, 2024
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