Asked by Cheng Tso Hsieh on Jul 18, 2024
Verified
Marginal utility can be:
A) positive,but not negative.
B) positive or negative,but not zero.
C) positive,negative,or zero.
D) decreasing,but not negative.
Marginal Utility
The additional satisfaction or utility a consumer gains from consuming one more unit of a good or service.
- Describe the fundamental notion of diminishing marginal utility.
Verified Answer
CB
Carmela BucciJul 22, 2024
Final Answer :
C
Explanation :
Marginal utility can be positive, negative or zero, depending on whether an additional unit of a good increases, decreases or leaves unchanged the total utility gained from consuming that good. Therefore, option C is the best fit.
Learning Objectives
- Describe the fundamental notion of diminishing marginal utility.
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