Which of the following is false?
A) We can be sure that people with more income get less marginal utility from their consumption of a good than those with less income.
B) We can be sure that people with less income get less marginal utility from their consumption of a good than those with more income.
C) We can be sure that those who receive greater marginal utility from consumption of a particular unit of an item receive greater total utility from consumption of that item.
D) All of the above are false.

Question

Quizplus · Accepted Answer

All of the options are false. Marginal utility is subjective and varies from person to person, so we cannot make any definitive claims about how income affects it. Additionally, while greater marginal utility does contribute to greater total utility, it is not the only factor - other factors such as the price of the good and the consumer's budget constraints also play a role.

Which of the Following Is False