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Question

Higher consumption of a commodity may mean lower and lower marginal utility, but it never implies negative utility. Do you agree?

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Solution

Yes. As the consumer increases the consumption, the marginal utility derived from the consumption of a commodity must diminish as more units of that commodity are consumed at a point of time, and even can be negative. But the total satisfaction derived from that commodity can never be negative . A rational consumer would never buy a commodity which offers only negative satisfaction.

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