Question

Marginal utility can be:

A.Positive, but not negative
B. Positive or negative, but not equal to zero
C. Positive, negative, or equal to zero
D. Decreasing, but not negative

Answer 1

The correct answer is C. Positive, negative, or equal to zero.

Step-by-step explanation:

The correct answer is C. Positive, negative, or equal to zero.

Marginal utility measures the additional satisfaction that a consumer gains from consuming one additional unit of a good or service. It can be positive, negative, or equal to zero.

For example, let's say a student is eating pizza. The first slice of pizza provides a high level of satisfaction, so the marginal utility is positive. As the student continues to eat more slices, the marginal utility starts to diminish, and it can become negative if the student starts feeling full or experiencing discomfort.