Can marginal utility be negative and Total utility positive?
Yes, it is possible for the marginal utility to be negative while the total utility is positive.
When marginal utility is negative total utility should be?
When marginal utility is negative, then with additional input there will be a reduction in the total utility since total utility is the sum of all marginal utilities. Therefore, total utility will be diminishing when marginal utility is negative.
What does it mean for marginal utility to be negative?
What Is Marginal Utility? Positive marginal utility occurs when the consumption of an additional item increases the total utility. On the other hand, negative marginal utility occurs when the consumption of one more unit decreases the overall utility.
When marginal utility is decreasing but positive total utility is?
When Marginal Utility is positive, Total Utility Decreases. When we say that the total utility is increasing at a diminishing rate, we mean that amount of change in total utility is decreasing with the consumption of every extra unit which is nothing but marginal utility.
What happens to MU when Tu is maximum?
Explanation: When TU reaches its maximum, MU becomes zero.
When marginal utility is positive total utility is quizlet?
*If Marginal utility is positive, total utility must be increasing. *If Marginal Utility is negative, then total utility must be decreasing. The mix of consumer purchases that maximizes the utility attainable from available income. 1.
Can marginal benefit negative?
A negative marginal benefit occurs when the consumer consumes too much of a certain unit, and the additional unit of the product has negative consequences. For example, eating the fifth slice of a sugary cake makes the person sick.
Can the utility function be negative?
A utility function can certainly be negative. The utility function is nothing more than a way to represent a preference relationship. This is an important conceptual point.
When total utility increases marginal utility is a negative and increasing B negative and declining C zero D positive and declining?
Total utility will increase even when marginal utility decreases.
When total utility is maximum marginal utility is negative True or false?
– Economics. When total utility is maximum, marginal utility is zero.
What happens if MU is negative?
When marginal utility is negative (the 6th and the 7th units) then Total utility is decrease. These units give dissatisfaction, so it is no use having them. Marginal utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service.