Asked by Jeeva Senthilnathan on Jun 10, 2024
Verified
Total utility can be positive even when marginal utility is negative.
Marginal Utility
The additional satisfaction or utility received by consuming one more unit of a good or service.
Total Utility
The overall pleasure or value derived by using a certain amount of an item or service.
- Distinguish between total utility and marginal utility.
Verified Answer
NM
Nadia MirzaJun 15, 2024
Final Answer :
True
Explanation :
Total utility can continue to increase even when marginal utility is negative because total utility is the cumulative satisfaction from consumption, whereas negative marginal utility indicates that each additional unit consumed adds less to total utility or decreases it, but does not necessarily reduce total utility to below zero.
Learning Objectives
- Distinguish between total utility and marginal utility.
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