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  • 19-03-2021
  • Business
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If the rate of increase of total utility declines as the quantity consumed of a good increases, it follows that marginal utility must be

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berno berno
  • 20-03-2021

Answer:

negative

Explanation:

Marginal utility refers to the additional satisfaction that a consumer obtains from getting one more unit of a good. Marginal utility is negative if the overall utility decreases with the consumption of one more unit.

As the rate of increase of total utility declines, the quantity consumed of a good increase. It follows that marginal utility must be negative.

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