Refer to the following figure to answer the following questions:

-Marginal utility is negative
A) at all levels of consumption.
B) from this consumer's sixth taco on.
C) never.
D) for this consumer's fifth and sixth tacos only.
E) when marginal utility is positive.

Question

Refer to the following figure to answer the following questions:
 
-Marginal utility is negative
A) at all levels of consumption. 
B) from this consumer's sixth taco on. 
C) never. 
D) for this consumer's fifth and sixth tacos only. 
E) when marginal utility is positive.

Quizplus · Accepted Answer

The figure shows that marginal utility is positive up to the fifth taco, but becomes negative for the sixth taco and beyond. Therefore, the best choice(s) would be to consume no more than five tacos in order to maximize utility. Beyond the fifth taco, the marginal disutility (negative marginal utility) of consuming additional tacos outweighs any potential benefit.

Refer to the Following Figure to Answer the Following Questions