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Question
When total utility (TU) increases marginal utility (MU) is negative.
When total utility (TU) increases marginal utility (MU) is negative.
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Solution
The correct option is B False
As total utility increases, marginal utility would still be positive. But, marginal utility could be increasing or decreasing. Once, marginal utility is negative, total utility will begin to reduce.
As total utility increases, marginal utility would still be positive. But, marginal utility could be increasing or decreasing. Once, marginal utility is negative, total utility will begin to reduce.
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