If Marginal Utility Is Zero

question 8

Multiple Choice

If marginal utility is zero,

• A) a rational consumer will consume one more unit.
• B) a rational consumer will consume one less unit next time.
• C) a rational consumer will not consume additional units beyond this point.
• D) a rational consumer will consume one more unit if the price is zero.

---

Definitions:

Chi-Squared Test

A statistical analysis conducted to assess whether there's a significant disparity between the anticipated frequencies and the actual frequencies across one or multiple categories.

P-Value

A measure that indicates the probability of observing the given data, or something more extreme, if the null hypothesis is true.

Contingency Table

A table often used in statistics to display frequencies for two or more categorical variables in a tabular form.

Qualitative Variables

Variables that describe or categorize attributes or qualities, not numbers.