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.

Question

Quizplus · Accepted Answer

To maximize satisfaction from the consumption of a free product, a person should consume until the marginal utility (the additional satisfaction from consuming one more unit) is equal to zero. This is because consuming beyond the point where marginal utility becomes zero would lead to a decrease in overall satisfaction, as per the law of diminishing marginal utility.

If a Person Wishes to Maximize Their Satisfaction from the Consumption