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When marginal utility is negative, total utility is __________. A zero B diminishing C maximum D minimum

When marginal utility is negative, total utility is __________.

A

zero

B

diminishing

C

maximum

D

minimum

 

Grade:

2 Answers

Vikas TU
14149 Points
3 years ago
Dear student 
When marginal utility becomes negative the addition to total utility will be negative, thus, leading to diminishing total utility. 
ankit singh
askIITians Faculty 614 Points
3 years ago

ANSWER

Total utility is the sum of all marginal utilities derived from consumption of each additional unit of a commodity. When marginal utility becomes negative the addition to total utility will be negative, thus, leading to diminishing total utility. 

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