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If a service is free, you will consume more and more of it until ? A) your margi

ID: 1096035 • Letter: I

Question

If a service is free, you will consume more and more of it until ? A) your marginal utility is zero B) your total utility is zero C) both your marginal utility and your total utility are zero D) neither your marginal utility nor your total utility is zero If a service is free, you will consume more and more of it until ? If a service is free, you will consume more and more of it until ? A) your marginal utility is zero B) your total utility is zero C) both your marginal utility and your total utility are zero D) neither your marginal utility nor your total utility is zero

Explanation / Answer

A) your marginal utility is zero

Reason:

Marginal utility = price at optimality

Here price=0

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