Question

Marginal utility can be rev: 04_09_2018 Multiple Choice positive, but not negative. positive or negative, but not equal to zero. positive, negative, or equal to zero. decreasing, but not negative.

Answer 1

positive, negative, or equal to zero

Explanation:

Marginal utility is the derivative of the utility function. That function may be increasing or decreasing and may have a turning point. Hence the marginal utility can have either sign or be zero.