If Total Utility Has Reached a Maximum Level, and Assuming

question 322

Multiple Choice

If total utility has reached a maximum level, and assuming that diminishing marginal utility already applies, then what will happen as the consumer consumes additional units of the product?

• A)Marginal utility of the additional units will be greater than zero.
• B)Total utility will turn negative.
• C)Marginal utility of the additional units will turn negative.
• D)Total utility will increase at a diminishing rate.

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Definitions:

Self-Propelled

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Marketing strategies aimed at increasing sales and attracting customers in the short term through discounts, offers, or special events.

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Short-Term Boost

A temporary increase or improvement in performance or condition, often quickly fading in its impact.