Asked by
priyanka surve
on Nov 25, 2024Verified
A rational consumer will cease purchasing a product at that quantity where marginal utility begins to diminish.
Marginal Utility
This term refers to the additional satisfaction or utility gained by consuming one more unit of a good or service.
Rational Consumer
An economic theory assumption that consumers make purchasing decisions based on their rational outlook, available information, and self-interest to maximize utility.
- Apprehend the essentiality of the law of diminishing marginal utility and its influence on consumer actions.
Verified Answer
CM
Learning Objectives
- Apprehend the essentiality of the law of diminishing marginal utility and its influence on consumer actions.