If Consumption of a Good Generates a Marginal Utility of Zero

question 90

Multiple Choice

If consumption of a good generates a marginal utility of zero, then consumption of an additional unit would mean that total utility would

• A) not change.
• B) also be zero.
• C) be negative.
• D) be increasing.
• E) be decreasing.

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Definitions:

Hotel Liability

Hotel Liability concerns the legal responsibility of a hotel for injuries or losses suffered by guests due to the hotel's actions or inactions.

Stolen Television

A television that has been illegally taken from its rightful owner without permission.

Price Discrimination

The practice of selling the same goods to different buyers at different prices.

Competing Buyers

Buyers who are interested in purchasing the same product or property, often leading to a competitive situation such as a bidding war.