When marginal utility is negative, total utility will be __________.

increasing

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decreasing

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constant

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zero

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Solution

The correct option is B decreasing
Marginal utility is the rate of total utility and thus when marginal utility is negative ,total utility starts decreasing as at this point of time consumption of an additional unit of that product yields negative results.

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Similar questions

When marginal utility is zero, total utility is:

a. Zero

b. Minimum

c. Maximum

d. Negative

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