Question

The fact that total utility is positive does not mean that marginal utility can't be negative. Total utility reaches a maximum when marginal utility reaches zero and begins to decline when marginal utility is negative.

-true
-false

Answer 1

The statement is true because although total utility can be positive, marginal utility can still be negative. Total utility reaches its maximum when the marginal utility is zero, and it starts to decline when the marginal utility becomes negative.

Step-by-step explanation:

True.

The statement is true because although total utility can be positive, marginal utility can still be negative. Total utility reaches its maximum when the marginal utility is zero, and it starts to decline when the marginal utility becomes negative. This occurs because as more units of a good are consumed, the additional satisfaction gained from each additional unit decreases, leading to a decrease in marginal utility.