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.

Question

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.

Quizplus · Accepted Answer

A consumer will consume additional units of the good as long as marginal utility is positive, even if the price is zero, because they gain additional satisfaction from each unit.

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