According to the principle of rational choice, if there is diminishing marginal utility:
A) and the price received for supplying a good goes up, you supply less of that good.
B) and the price received for supplying a good goes up, you supply more of that good.
C) the decision producers face about how much to supply is not affected.
D) after a certain point, even if the price goes up, you don't supply more of that good.

Question

Quizplus · Accepted Answer

According to the principle of rational choice, if the price received for supplying a good increases, producers are incentivized to supply more of that good to maximize their utility, despite diminishing marginal utility.

According to the Principle of Rational Choice, If There Is