Answer to Question #36383 in Microeconomics for lasisi

Question

If the marginal utility decreases, total utility also decreases? Yes or No

Answer 1

No, it is true, when marginal utility is negative. As the total utility is the sum of marginal utilities, when marginal utility decrease, total utility increases, but with smaller temps of increase. And if marginal utility become negative and decreases further, then total utility decreases.