The reason why a rational consumer with diminishing marginal would not consume an additional unit in the situation of negative
Explanation of Solution
As rational consumers see all alternatives while deciding to maximize their utility. And, by assuming that there is only one good that can be used or consumed, they raise their consumption or usage of a particular good as long as the marginal utility of that particular commodity is greater than the actual cost.
If the good is free of cost or there is zero cost of the product, then consumers can increase their utility by consuming or using more of the good. But they use more of it only when there is a positive marginal utility. But if the marginal utility is negative, then consumers decrease their utility because it can become unfavorable for them and they feel less satisfied.
Introduction: Marginal utility refers to the benefit or satisfaction of a person by consuming one additional unit of the good.
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Krugman's Economics For The Ap® Course
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