A utility-maximizing consumer would never purchase a good if the:
A) MU/P is positive.
B) marginal utility is positive.
C) marginal utility is negative.
D) none of these is correct.

Question

Quizplus · Accepted Answer

A utility-maximizing consumer would never purchase a good if the marginal utility (MU) is negative. This is because consuming an additional unit of the good would decrease the total utility (TU) and lead to a decrease in overall satisfaction. In order to maximize utility, a consumer would continue purchasing a good until the marginal utility is zero or positive.

A Utility-Maximizing Consumer Would Never Purchase a Good If The