If the price of a good is zero, a rational consumer will
A) buy all of the units available.
B) not consume the good at all since it must not be valuable if it has a zero price.
C) stop consuming the good when marginal utility is zero.
D) consume the good up to the point where total utility is just below zero.

Question

Quizplus · Accepted Answer

A rational consumer will stop consuming a good when the marginal utility, or the additional satisfaction gained from consuming one more unit of the good, is zero. This is because consuming beyond this point would not increase their satisfaction. Even if the price is zero, consuming more of the good than what brings the marginal utility to zero would not make rational sense, as it does not add to the consumer's utility.

If the Price of a Good Is Zero, a Rational