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MMLU-Pro / 7673 / Using a marginal utility approach, explain why air, so vitally important to the…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

Using a marginal utility approach, explain why air, so vitally important to the maintenance of life, is free.

category

economics

options

  1. Air is free because it regenerates itself too quickly to be priced.
  2. Air is free because it can't be packaged and sold
  3. Air is free because it's abundant
  4. Air is free because its marginal utility remains constant, regardless of consumption.
  5. Air is free because its marginal utility is zero, it is not a scarce good.
  6. Air is free because the cost of production is zero.
  7. Air is free because no one owns it
  8. Air is free because the technology to control its distribution does not exist.
  9. Air is free because it is impossible to measure its utility.
  10. Air is free because it is a fundamental human right.

src

stemez-Economics

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