Refer to the following figure to answer the following questions:

-Marginal utility is negative
A) at all levels of consumption.
B) from the consumer's eighth cupcake on.
C) never.
D) for the consumer's fifth and sixth cupcakes only.
E) when marginal utility is positive.

Question

Refer to the following figure to answer the following questions:
 
-Marginal utility is negative
A) at all levels of consumption. 
B) from the consumer's eighth cupcake on. 
C) never. 
D) for the consumer's fifth and sixth cupcakes only. 
E) when marginal utility is positive.

Quizplus · Accepted Answer

Marginal utility is negative from the eighth cupcake on, indicating that the consumer is experiencing diminishing marginal utility and may be better off consuming less than eight cupcakes.

Refer to the Following Figure to Answer the Following Questions