Asked by
Gregory Redmond
on Oct 12, 2024
Verified
If a person wishes to maximize their satisfaction from the consumption of a free product,they should consume until
A) marginal utility is maximized.
B) marginal utility is equal to total utility.
C) total utility is equal to zero.
D) marginal utility is equal to zero.
E) total utility begins to increase.
Marginal Utility
The additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a product.
Total Utility
The aggregate level of satisfaction or fulfillment that a consumer receives through the consumption of goods or services.
- Familiarize yourself with the impact of total and marginal utility on consumer choice behavior.
- Acknowledge the significance of marginal utility in shaping decisions aimed at maximizing utility.
Verified Answer
LE
Learning Objectives
- Familiarize yourself with the impact of total and marginal utility on consumer choice behavior.
- Acknowledge the significance of marginal utility in shaping decisions aimed at maximizing utility.