If the Marginal Utility of a Good Is Negative, Then

question 160

Multiple Choice

If the marginal utility of a good is negative, then

• A)consumers should buy less of it.
• B)consumers will consume it only if it is free.
• C)consumers should buy more of it to make its marginal utility positive.
• D)the law of diminishing marginal utility is being violated.

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Definitions:

Monopolistic Competitors

Firms in a market structure characterized by many sellers offering products that are similar but not identical, leading to non-price competition.

Large Firms

Entities that operate on a grand scale across various sectors, typically characterized by significant market share, extensive operations, and high revenue.

Average Total Cost Curve

A graphical representation in economics showing the average total cost of production at different levels of output.

Demand More Elastic

A situation where the quantity demanded of a good or service is highly responsive to changes in its price.