If the amount paid for a good by consumers reflected the value of the total benefits they receive from consuming it:
A)the value of the total utility derived from consumption of the good exceeds the total spending on the good.
B)the value of consumer surplus would be zero.
C)the marginal valuation of the good would be irrational.
D)the value of total utility derived from consumption of the good would be equal to zero.
E)the value of marginal utility of an additional unit of the good would be negative.

Question

If the amount paid for a good by consumers reflected the value of the total benefits they receive from consuming it:​
A)the value of the total utility derived from consumption of the good exceeds the total spending on the good.
B)the value of consumer surplus would be zero.
C)the marginal valuation of the good would be irrational.
D)the value of total utility derived from consumption of the good would be equal to zero.
E)the value of marginal utility of an additional unit of the good would be negative.

Quizplus · Accepted Answer

If the amount paid by consumers equals the total benefits they receive, consumer surplus, which is the difference between what consumers are willing to pay and what they actually pay, would be zero.

If the Amount Paid for a Good by Consumers Reflected