Question

If the rate of increase of total utility declines as the quantity consumed of a good increases, it follows that marginal utility must be

Answer 1

negative

Step-by-step 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.