When marginal utility is negative, total utility is __________.

zero

No worries! We‘ve got your back. Try BYJU‘S free classes today!

diminishing

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

maximum

No worries! We‘ve got your back. Try BYJU‘S free classes today!

minimum

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B diminishing
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.

Suggest Corrections

Similar questions

When marginal utility is zero, total utility is:

a. Zero

b. Minimum

c. Maximum

d. Negative

Join BYJU'S Learning Program