If the marginal utility of a good is negative, then
A)consumers should buy less of it.
B)consumers will consume it only if it is free.
C)consumers should buy more of it to make its marginal utility positive.
D)the law of diminishing marginal utility is being violated.

Question

Quizplus · Accepted Answer

When the marginal utility of a good is negative, it means that consuming an additional unit of the good decreases the overall satisfaction of the consumer. Therefore, consumers should buy less of it to avoid the decrease in satisfaction.

If the Marginal Utility of a Good Is Negative, Then