Marginal utility may be negative.

Name: Marginal utility may be negative.
Brand: Quizplus
Rating: 4.8 (35 reviews)

Question

Quizplus · Accepted Answer

Marginal utility may become negative when consuming too much of a particular good, leading to a decrease in overall satisfaction. Marginal utility refers to the additional satisfaction or benefit a consumer derives from consuming one additional unit of a good or service. In some cases, consuming one extra unit can actually decrease overall satisfaction, resulting in a negative marginal utility.

Marginal Utility May Be Negative