Refer to Figure 19.2.With no budget constraint,a rational consumer will consume
A)0 apples.
B)1 apple.
C)6 apples.
D)an infinite number of apples.

Question

Refer to Figure 19.2.With no budget constraint,a rational consumer will consume 
A)0 apples. 
B)1 apple. 
C)6 apples. 
D)an infinite number of apples.

Quizplus · Accepted Answer

The rational consumer will choose the point where their marginal utility equals the price of the good. In this case, the marginal utility of the 6th apple is equal to its price of $5, so the consumer will consume 6 apples. This is the point where the consumer maximizes their utility.