Rational Consumer Choice and Marginal Utility
Suppose a consumer experiences diminishing marginal utility from consuming slices of pizza. The marginal utility of the third slice is 15 utils, and the price is $5 per slice. For a rational consumer to purchase a fourth slice, which of the following must be true?
A
Its price must drop below $5
B
Its marginal utility per dollar must equal exactly 3
C
Its marginal utility must be at least 5 utils
D
Its marginal utility must exceed 15 utils
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