If the Price of a Good Is $0, a Consumer

question 226

Multiple Choice

If the price of a good is $0, a consumer will

• A) consume an infinite quantity.
• B) consume all units with positive marginal utility.
• C) consume the entire amount supplied.
• D) consume until total utility becomes 0.

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Definitions:

Monopoly

A market structure characterized by a single seller or producer dominating the entire market, with no close substitutes for its product or service.

Marginal Cost

The increased cost associated with making one extra unit of a good or service.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a given period.

Monopolist

A single seller in a market who has significant control over the price and supply of a unique product or service.