Which of the Following Is True When the Price of a Good

question 134

Multiple Choice

Which of the following is true when the price of a good is zero?​

• A)A consumer will consume additional units of the good as long as total utility derived from consumption is positive.
• B)A consumer will consume an infinite quantity of the good as the good is available free of cost.
• C)A consumer will consume additional units of the good as long as marginal utility is positive.
• D)A consumer will consume the entire amount of the good available in the market.
• E)A consumer will consume until total utility derived from consumption becomes zero.

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Definitions:

Dividend Cuts

A reduction in the dividend amount announced by a company, usually due to financial difficulties or a need to conserve cash.

Cash Dividends

Payments made by a corporation to its shareholders from its earnings in the form of cash.

Bond Restriction

Conditions or covenants included in a bond agreement that impose certain limitations on the issuer's actions.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations using its current assets.