A rational person will NEVER consume 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 person will only consume a product when its marginal utility is positive or zero. If the marginal utility is negative, then the additional consumption will decrease their overall satisfaction, which goes against the rational decision-making process.

A Rational Person Will NEVER Consume a Product When Its