A rational consumer would never purchase a good if its
A) marginal utility is falling
B) MU/P is positive
C) MU/P is falling
D) marginal utility is negative
E) contribution to total utility is less than one

Question

Quizplus · Accepted Answer

A rational consumer would not purchase a good if its marginal utility is negative because it means the consumer would derive disutility or dissatisfaction from consuming an additional unit of the good. Positive marginal utility, even if falling, still adds to the consumer's satisfaction. The ratio of marginal utility to price (MU/P) being positive or falling does not necessarily deter purchase, as it still indicates some level of utility gain relative to cost. The contribution to total utility being less than one does not inherently deter purchase, as utility can be derived from small increments.

A Rational Consumer Would Never Purchase a Good If Its