When total utility declines, marginal utility is ________.

negative

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

zero

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

increasing

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

decreasing

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

Open in App

Solution

The correct option is A negative
When marginal utility is negative it means the consumer would not be getting any more satisfaction from consuming more of the product. Total utility will be at its highest when marginal utility is zero. But, total utility will reduce when marginal utility is negative.

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