A utility-maximizing consumer would never purchase a good if the:
a. MU/P is positive.
b. marginal utility is positive.
c. marginal utility is negative.
d. none of these is correct.
c
You might also like to view...
An article in the Wall Street Journal noted the following: Instead of relying on a full-coach, round-trip unrestricted fare of about $2,000 between Cleveland and Los Angeles
Continental [Airlines] since June has offered a $716 unrestricted fare in that market .... Through October, the test resulted in about the same revenue that Continental thinks it would have collected with its higher fare. Source: Scott McCartney, "Airlines Try Cutting Business Fares, Find They Don't Lose Revenue," Wall Street Journal, November 22, 2002. What is the absolute value of the price elasticity of demand on this airline route? A) less than 1 B) approximately 1 C) greater than 1 D) 0
Which of the following is not a result of rent control?
a. fewer new apartments offered for rent b. less maintenance provided by landlords c. bribery d. higher quality housing