A rational consumer will cease purchasing a product at that quantity where marginal utility begins to diminish.

Question

Quizplus · Accepted Answer

A rational consumer will continue purchasing a product until the marginal utility of the product equals the marginal cost, not merely when marginal utility begins to diminish. Diminishing marginal utility occurs as more of a product is consumed, but this does not immediately stop consumption.

A Rational Consumer Will Cease Purchasing a Product at That