The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-Marginal utility is negative when total utility is increasing.

Question

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3
 
-Marginal utility is negative when total utility is increasing.

Quizplus · Accepted Answer

Marginal utility is the additional utility gained from consuming one more unit of a good. It can be positive, zero or negative. When total utility is increasing, marginal utility is positive. It becomes zero at the point where total utility is maximum and starts decreasing after that. Therefore, marginal utility can be negative when total utility is decreasing or diminishing.

The Below Figure Shows the Various Combinations of the Goods