The marginal utility from an additional unit of a good is positive when consumption of an extra unit of the good causes disutility.

Question

Quizplus · Accepted Answer

The statement is false. Marginal utility is the additional satisfaction or benefit a consumer derives from consuming an extra unit of a good. If the marginal utility from an additional unit of a good is positive, it means that the utility or satisfaction derived from consuming the extra unit is positive, not negative.

The Marginal Utility from an Additional Unit of a Good