Which of the Following Statements Is Not True About Marginal

question 417

Multiple Choice

Which of the following statements is not true about marginal utility when total utility is at its maximum point?

• A) Marginal utility is zero.
• B) Marginal utility is decreasing.
• C) A rational consumer will not consume additional units beyond this point.
• D) Marginal utility is undefined.

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Definitions:

Private Markets

Markets where transactions occur directly between parties without significant regulatory oversight, often avoiding public exchanges.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be consumed by anyone and one person’s consumption doesn’t reduce availability to others.

Free-riders

Individuals who benefit from resources, goods, or services without paying for them, often seen in public goods and collective risk scenarios.

Private Markets

are markets where transactions are conducted directly between two parties without being publicly traded on an exchange.