When total utility falls,marginal utility is _____
A)at its maximum.
B)infinite.
C)positive.
D)negative.
E)zero.

Question

Quizplus · Accepted Answer

When total utility falls, it means that the marginal utility is declining. Marginal utility is the additional satisfaction gained from consuming one more unit of a good. As the consumer consumes more units, the satisfaction gained from consuming an additional unit starts decreasing. This implies that the marginal utility is now negative. Therefore, the correct answer is (D) negative.

When Total Utility Falls,marginal Utility Is _____