If total utility is falling, marginal utility is:
A) positive.
B) negative
C) positive, but declining.
D) either positive or negative.
E) zero.

Name: If total utility is falling, marginal utility is: A) positive. B) negative C) positive, but declining. D) either positive or negative. E) zero.
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Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, as total utility increases, marginal utility decreases. Therefore, if total utility is falling, it means that the marginal utility has become negative.

If Total Utility Is Falling, Marginal Utility Is