Consuming past the maximization point produces a(n)________ marginal utility.
A) indifferent
B) positive
C) negative
D) equal
E) increasing

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, as a consumer continues to consume a good, the marginal utility derived from each additional unit of the good decreases. The point at which the marginal utility is maximized is when the consumer has consumed enough of the good, and any further consumption will result in a decrease in marginal utility. Therefore, consuming past the maximization point produces a negative marginal utility.

Consuming Past the Maximization Point Produces A(n)________ Marginal Utility