Which of the following statements is false?
A)Marginal utility may be negative.
B)Marginal utility is the slope of total utility.
C)If the more is better assumption is satisfied, total utility will increase as consumption increases.
D)If the more is better assumption is satisfied, the marginal utility from consuming the second unit must be greater than the marginal utility from consuming the first unit.

Question

Quizplus · Accepted Answer

If the more is better assumption is satisfied, the marginal utility from consuming the second unit may or may not be greater than the marginal utility from consuming the first unit. It depends on various factors such as the nature of the good, individual preferences, and the context in which the consumption is taking place. If the more is better assumption is satisfied, the marginal utility from consuming the second unit may be either greater or lesser than the marginal utility from consuming the first unit. It depends on various individual factors such as preferences, tastes, and needs.

Which of the Following Statements Is False