If marginal utility is zero
A) a rational consumer will consume more units next time.
B) a rational consumer will consume fewer units next time.
C) a rational consumer will not consume additional units.
D) a rational consumer will consume more units if the price is zero.

Question

Quizplus · Accepted Answer

Marginal utility refers to the additional satisfaction or benefit that a consumer derives from consuming one extra unit of a good or service. When the marginal utility of a good or service is zero, it means that the consumer has reached the point of saturation or maximum satisfaction from consuming that good or service. Hence, a rational consumer will not consume additional units because it will not provide any further benefit or satisfaction.

If Marginal Utility Is Zero