Q176
When marginal is negative, it must be true that
A.
The average is negative
B.
The average is decreasing
C.
The total is negative
D.
The total is decreasing
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
When marginal is negative, it must be true that the total is decreasing. Marginal utility may decrease into negative utility, as it may become entirely unfavorable to consume another unit of any product.