A Rational Individual Will Never Consume a Unit of a Good

question 33

Multiple Choice

A rational individual will never consume a unit of a good if its

• A) marginal utility is diminishing.
• B) marginal utility is less than average utility.
• C) marginal utility is increasing.
• D) marginal utility is negative.

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Definitions:

Oligopolistic Firms

are companies operating in a market structure characterized by a small number of firms controlling a large market share, leading to limited competition.

Rival Firms

Companies that compete against one another in the same market for consumers or resources.

ATC

Average Total Cost, which is the total cost of production divided by the total quantity produced, indicating the average cost per unit.

Territorial Division

The division or partitioning of land or space into separate areas, often for administrative or legal purposes.