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What is the consequence of continuing to consume after marginal utility becomes negative?

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Question

What is the consequence of continuing to consume after marginal utility becomes negative?

Options

  • Total utility remains constant

  • You get extra satisfaction

  • You experience disutility

  • Marginal utility stays positive

MCQ
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Solution

You experience disutility

Explanation:

Consuming more when marginal utility is negative leads to a decrease in total utility,this is known as disutility.

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