Question #64011

If total utility is decreasing as more units are consumed, then marginal utility must be

a. increasing at a decreasing rate

b. positive

c. decreasing at an increasing rate

d. negative

e. decreasing

Kindly tell which is right answer and why

a. increasing at a decreasing rate

b. positive

c. decreasing at an increasing rate

d. negative

e. decreasing

Kindly tell which is right answer and why

Expert's answer

If total utility is decreasing as more units are consumed, then marginal utility must be negative, because total utility is the sum of marginal utilities.

So, the correct answer is:

d. negative.

So, the correct answer is:

d. negative.

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