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Yes, it is possible for marginal utility to be negative in economic theory. This occurs when consuming an additional unit of a good or service decreases overall satisfaction or utility.

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5mo ago

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Can marginal utility be negative?

Yes. Some objects and activities can generate negative marginal utility and lower total utility. For example, polluted air.


Increasing marginal utility of goods?

Not possible. Law of Diminishing Marginal utility states that equal additions to a good provide smaller and smaller increases in utility, therefore marginal utility decreases.


What are differences between marginal utility and total utility?

Topic Marginal Utility Total Utility 1. Definition Marginal utility is the extra satisfaction which a consumer gets from consuming additional units of goods. Total utility is the sum of total satisfaction of a consumer derives from consumption of a particular good. 2. Feature It can be negative. It can't be negative. 3. Sloping It is downward sloping. It is upward sloping.


What will happen to the utility of a good as more of it is consumed?

The marginal utility will diminish (that is, it remains positive but its incremental change is negative).


When total utility is at its maximum where is marginal utility?

marginal utility is zero


When total utility increases marginal utility is?

marginal utility decreases


What is the difference between equi-marginal utility and diminishing marginal utility?

What is the difference between equi-marginal utility and diminishing marginal utility?Read more:What_is_the_difference_between_equi-marginal_utility_and_diminishing_marginal_utility


Why is marginal analysis involved in economics?

Economic theory makes much use of marginal concepts. Marginal cost, marginal revenue, marginal rate of substitution, marginal utility, marginal product, and marginal propensity to consume are a few examples. Marginal means on the margin and refers to what happens with a small change from the present position. It is the concept of economic choices to make small changes rather than large-scale adjustments. Marginal analysis is the key principle of profit-maximization in firms and utility maximization among consumers.


What is marginal utility. why marginal utility diminishing. give atleast 10 examples where the marginal utility have not diminising?

Life-saving procedures


How does an individual or household benefit from the law of diminishing marginal utility?

what is it marginal utility


How do you calculate the marginal rate of substitution between two goods in an economic model?

In an economic model, the marginal rate of substitution between two goods is calculated by finding the ratio of the marginal utility of one good to the marginal utility of the other good. This ratio represents the rate at which a consumer is willing to trade one good for another while maintaining the same level of satisfaction.


How the slope of the demand curve can be explained by the principle of marginal utility?

The demand curve is negatively sloped because it is based on the principle of marginal utility and this utility decreases as consumption increases. The demand price which depends on the marginal utility of a good also declines as consumption increases, so quantity and price are inversely related, leading to the negative curve and the law of demand.