Which Statement Is False

question 97

Multiple Choice

Which statement is false?

• A)A product's utility to a buyer is measured by how much the buyer is willing to pay for it.
• B)A person would maximize her total utility when she had no consumer surplus.
• C)We will consume a service when its marginal utility is equal to its price.
• D)As the price of a good rises the consumer surplus decreases.

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Definitions:

Advertising

The activity or profession of producing advertisements for commercial products or services, aiming to improve market awareness and drive consumer behavior.

Mass Production

A manufacturing process that produces large quantities of standardized products using assembly lines or automation technology.

Higher Prices

An increase in the cost of goods or services in the marketplace, often due to factors like inflation, supply and demand, or production costs.

Monopolistically Competitive

Refers to a market structure where many companies sell products that are similar but not identical, leading to competitive prices and product differentiation.