Most goods can yield
A)Only positive marginal utility.
B)Both positive and negative marginal utility.
C)Only negative marginal utility.
D)Only zero marginal utility.

Question

Quizplus · Accepted Answer

Most goods can yield both positive and negative marginal utility. As consumers consume more units of a good, the marginal utility eventually becomes negative. For example, eating one slice of pizza may bring enjoyment (positive marginal utility), but eating six slices of pizza may lead to discomfort (negative marginal utility). Therefore, most goods have a diminishing marginal utility, which means that the additional satisfaction from consuming one more unit of the good decreases as the consumer consumes more units of the good.

Most Goods Can Yield