Most goods can yield
A)Only positive marginal utility.
B)Both positive and negative marginal utility.
C)Only negative marginal utility.

Question

Quizplus · Accepted Answer

Most goods can yield both positive and negative marginal utility. As we consume more and more of a good, the additional utility we get from each additional unit decreases, and at some point may even become negative (meaning that consuming more actually reduces our total utility). However, before this point, each additional unit of the good brings us additional satisfaction/utility, meaning that marginal utility is positive. So, most goods (but not all) will have a period during which marginal utility is positive, followed by a period during which it is negative.

Most Goods Can Yield