Assuming a perfectly competitive market implies that households have perfect knowledge of qualities and prices of everything available in the market.

Which of the following statements is true about the total utility provided by a good?

a. Total utility can never be negative. b. Total utility is maximized when marginal utility is maximized. c. Total utility continues to increase as more of the good is consumed. d. Total utility is maximized when marginal utility is zero (for total utility > 0). e. Total utility is maximized when marginal utility is zero (for total utility < 0).

Government agencies, such as the National Science Foundation, subsidize basic research because in the absence of a subsidy too little research would be conducted

a. True b. False Indicate whether the statement is true or false