Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

What happens to the total utility if the marginal utility of commodity is negative?

Options:

total utility increases

total utility decreases

total utility remains constant

total utility is negative

Correct Answer:

total utility decreases

Explanation:

Total utility of any commodity is the sum total of all the marginal utilities. If marginal utility is negative, naturally the sum would decline, leading to decline in the total utility.