Explain why a free market system is a contributor to utility maximization and the beneficial
allocation of scarce resources?

Having a long credit that will be corrected is better that a short credit that is clear is simply because with long credit history, a prospective lender can see how you have operated your credit facility over a considerable period. nobody's credit history is perfect - everyone has at least 1 or 2 lapses on their record. have short history of your credit doesn't show patterns or trends of persistent late payments.

The correct answer for the above question is (d) the additional benefit from consuming one more unit;