When marginal utility is negative, total utility is
A) increasing at a decreasing rate.
B) zero.
C) at its maximum.
D) decreasing.

Name: When marginal utility is negative, total utility is A) increasing at a decreasing rate. B) zero. C) at its maximum. D) decreasing.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When marginal utility is negative, it means that consuming an additional unit of a good is actually making the total utility decrease. Therefore, the total utility is decreasing.

When Marginal Utility Is Negative, Total Utility Is