A rational consumer will NEVER purchase a product when its
A) marginal utility is negative.
B) total utility is increasing at a decreasing rate.
C) marginal utility is decreasing.
D) total utility is decreasing at an increasing rate.

Question

Quizplus · Accepted Answer

A rational consumer will always try to maximize their utility. When the marginal utility of a product is negative, it means that the additional satisfaction received from consuming one more unit of the product is less than the satisfaction received from the previous unit. This decreases the overall utility and makes it irrational for the consumer to purchase more of the product. Therefore, a rational consumer will never purchase a product when its marginal utility is negative.

A Rational Consumer Will NEVER Purchase a Product When Its