If a person had increasing marginal utility, then the decline in utility from losing $1,000 would be greater than the increase in utility from gaining $1,000.

Question

Quizplus · Accepted Answer

Increasing marginal utility means that each additional unit of a good or service provides more satisfaction than the previous one, so the gain in utility from gaining $1,000 would be greater than the loss in utility from losing $1,000.

If a Person Had Increasing Marginal Utility, Then the Decline