If a Good Is Offered Free of Charge,one Would _____

question 45

Multiple Choice

If a good is offered free of charge,one would _____

• A)never stop consuming it.
• B)stop consuming it when its marginal utility begins to fall.
• C)stop consuming it when its marginal utility begins to increase.
• D)stop consuming it when its marginal utility has declined to zero.
• E)never consume it because it has no market value.

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Definitions:

Optimal Extraction Level

The most efficient rate at which a resource can be extracted to balance economic benefits and conservation.

Market Price

The current price at which a good or service can be bought or sold in a marketplace, subject to fluctuations based on supply and demand dynamics.

User Cost

The cost associated with the use of a natural resource or capital, factoring in depreciation or depletion of the resource.

User Cost

The opportunity cost of utilizing a good or service, often considering factors like depreciation and the potential benefit from alternative uses.