If total utility is decreasing as more units are consumed, then marginal utility must be
A) negative.
B) decreasing at an increasing rate.
C) decreasing.
D) increasing at a decreasing rate.
E) positive.

Question

Quizplus · Accepted Answer

If total utility is decreasing as more units are consumed, it means that each additional unit is providing less satisfaction than the previous one. This implies that the marginal utility must be negative.

If Total Utility Is Decreasing as More Units Are Consumed