If marginal utility is negative, total utility is negative.

Name: If marginal utility is negative, total utility is negative.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The statement is false. If marginal utility is negative, it means that consuming an additional unit of the good will decrease the total utility. However, it does not necessarily mean that the total utility is negative. Total utility can still be positive, but the rate at which it is increasing is decreasing with each additional unit consumed.

If Marginal Utility Is Negative, Total Utility Is Negative