What is marginal utility if total utility is falling?

Understand the Problem

The question is asking about the concept of marginal utility in relation to total utility, particularly when total utility is decreasing. It seeks to understand how marginal utility behaves in this scenario.

More Information

Marginal utility measures the additional satisfaction (utility) obtained from consuming one more unit of a good or service. When total utility decreases, the additional satisfaction from consuming one more unit is negative.

Tips

A common mistake is confusing the relationship between total utility and marginal utility. It's crucial to remember that if total utility is falling, marginal utility must be negative.

Sources

• Econ 202 Test 4 Flash Cards - quizlet.com
• Solved What is marginal utility if total utility is | Chegg.com - chegg.com
• When total utility falls, what does marginal utility become? - Quora - quora.com