When marginal utility is negative, total utility
A) increases at a decreasing rate.
B) is zero.
C) is at its maximum.
D) decreases.

Question

Quizplus · Accepted Answer

When marginal utility is negative, it means that the additional satisfaction gained from consuming an additional unit of the good is less than the previous unit of the good. This results in a decrease in the total utility. Therefore, option D, "decreases" is the correct answer.

When Marginal Utility Is Negative, Total Utility