The reason why a rational consumer with diminishing marginal would not consume an additional unit in the situation of negative marginal utility .

Question

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Answer 1

Question

Chapter 51, Problem 1CYU

To determine

The reason why a rational consumer with diminishing marginal would not consume an additional unit in the situation of negative marginal utility.

Expert Solution & Answer

Explanation of Solution

As rational consumers see all alternatives while deciding to maximize their utility. And, by assuming that there is only one good that can be used or consumed, they raise their consumption or usage of a particular good as long as the marginal utility of that particular commodity is greater than the actual cost.

If the good is free of cost or there is zero cost of the product, then consumers can increase their utility by consuming or using more of the good. But they use more of it only when there is a positive marginal utility. But if the marginal utility is negative, then consumers decrease their utility because it can become unfavorable for them and they feel less satisfied.

Economics Concept Introduction

Introduction: Marginal utility refers to the benefit or satisfaction of a person by consuming one additional unit of the good.

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Answer 2

Question

Chapter 51, Problem 1CYU

To determine

The reason why a rational consumer with diminishing marginal would not consume an additional unit in the situation of negative marginal utility.

Expert Solution & Answer

Explanation of Solution

As rational consumers see all alternatives while deciding to maximize their utility. And, by assuming that there is only one good that can be used or consumed, they raise their consumption or usage of a particular good as long as the marginal utility of that particular commodity is greater than the actual cost.

If the good is free of cost or there is zero cost of the product, then consumers can increase their utility by consuming or using more of the good. But they use more of it only when there is a positive marginal utility. But if the marginal utility is negative, then consumers decrease their utility because it can become unfavorable for them and they feel less satisfied.

Economics Concept Introduction

Introduction: Marginal utility refers to the benefit or satisfaction of a person by consuming one additional unit of the good.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 51, Problem 1CYU

To determine

The reason why a rational consumer with diminishing marginal would not consume an additional unit in the situation of negative marginal utility.

Expert Solution & Answer

Explanation of Solution

As rational consumers see all alternatives while deciding to maximize their utility. And, by assuming that there is only one good that can be used or consumed, they raise their consumption or usage of a particular good as long as the marginal utility of that particular commodity is greater than the actual cost.

If the good is free of cost or there is zero cost of the product, then consumers can increase their utility by consuming or using more of the good. But they use more of it only when there is a positive marginal utility. But if the marginal utility is negative, then consumers decrease their utility because it can become unfavorable for them and they feel less satisfied.

Economics Concept Introduction

Introduction: Marginal utility refers to the benefit or satisfaction of a person by consuming one additional unit of the good.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 51, Problem 1CYU

To determine

The reason why a rational consumer with diminishing marginal would not consume an additional unit in the situation of negative marginal utility.

Expert Solution & Answer

Explanation of Solution

As rational consumers see all alternatives while deciding to maximize their utility. And, by assuming that there is only one good that can be used or consumed, they raise their consumption or usage of a particular good as long as the marginal utility of that particular commodity is greater than the actual cost.

If the good is free of cost or there is zero cost of the product, then consumers can increase their utility by consuming or using more of the good. But they use more of it only when there is a positive marginal utility. But if the marginal utility is negative, then consumers decrease their utility because it can become unfavorable for them and they feel less satisfied.

Economics Concept Introduction

Introduction: Marginal utility refers to the benefit or satisfaction of a person by consuming one additional unit of the good.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 51, Problem 1CYU

To determine

The reason why a rational consumer with diminishing marginal would not consume an additional unit in the situation of negative marginal utility.

Expert Solution & Answer

Explanation of Solution

As rational consumers see all alternatives while deciding to maximize their utility. And, by assuming that there is only one good that can be used or consumed, they raise their consumption or usage of a particular good as long as the marginal utility of that particular commodity is greater than the actual cost.

If the good is free of cost or there is zero cost of the product, then consumers can increase their utility by consuming or using more of the good. But they use more of it only when there is a positive marginal utility. But if the marginal utility is negative, then consumers decrease their utility because it can become unfavorable for them and they feel less satisfied.

Economics Concept Introduction

Introduction: Marginal utility refers to the benefit or satisfaction of a person by consuming one additional unit of the good.

Answer 6

Chapter 51, Problem 1CYU

To determine

The reason why a rational consumer with diminishing marginal would not consume an additional unit in the situation of negative marginal utility.

Expert Solution & Answer

Explanation of Solution

As rational consumers see all alternatives while deciding to maximize their utility. And, by assuming that there is only one good that can be used or consumed, they raise their consumption or usage of a particular good as long as the marginal utility of that particular commodity is greater than the actual cost.

If the good is free of cost or there is zero cost of the product, then consumers can increase their utility by consuming or using more of the good. But they use more of it only when there is a positive marginal utility. But if the marginal utility is negative, then consumers decrease their utility because it can become unfavorable for them and they feel less satisfied.

Economics Concept Introduction

Introduction: Marginal utility refers to the benefit or satisfaction of a person by consuming one additional unit of the good.

Answer 7

Chapter 51, Problem 1CYU

To determine

The reason why a rational consumer with diminishing marginal would not consume an additional unit in the situation of negative marginal utility.

Answer 8

Expert Solution & Answer

Explanation of Solution

As rational consumers see all alternatives while deciding to maximize their utility. And, by assuming that there is only one good that can be used or consumed, they raise their consumption or usage of a particular good as long as the marginal utility of that particular commodity is greater than the actual cost.

If the good is free of cost or there is zero cost of the product, then consumers can increase their utility by consuming or using more of the good. But they use more of it only when there is a positive marginal utility. But if the marginal utility is negative, then consumers decrease their utility because it can become unfavorable for them and they feel less satisfied.