Asked by David Williams on May 31, 2024

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If Rachel bought too many hot dogs,her marginal utility would become negative and her total utility would

A) rise more slowly.
B) stop rising.
C) begin to fall.
D) become negative.

Marginal Utility

The additional satisfaction or benefit (utility) a consumer derives from consuming an additional unit of a good or service.

Total Utility

The total satisfaction received from consuming a certain quantity of goods or services.

  • Familiarize oneself with the concept of marginal utility and its repercussions on total satisfaction.
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AO
Abigail OrschellJun 05, 2024
Final Answer :
C
Explanation :
When Rachel bought too many hot dogs, her marginal utility would decrease and eventually become negative. This means that the additional hot dogs she consumes would provide less and less satisfaction, and eventually even cause dissatisfaction. As a result, her total utility would start to decline, indicating that she is worse off from consuming more hot dogs beyond a certain point. Therefore, the answer is C - her total utility would begin to fall.