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nirvana33 [79]
3 years ago
15

If total utility has reached a maximum level, and assuming that diminishing marginal utility already applies, then what will hap

pen as the consumer consumes additional units of the product?
Total utility will increase at a diminishing rateMarginal utility of the additional units will turn negativeMarginal utility of the additional units will be greater than zeroTotal utility will turn negative
Business
1 answer:
Nady [450]3 years ago
4 0

Answer:

Marginal utility of the additional units will turn negative

Explanation:

As total utility has reached a maximum level, adding additional units of the same product will generate the total utility to decrease thus, the marginal utility of this additional products is negative as they made the utility of the consumer to decrease.

The diminish return theory state that:

The units increase utility at a decreasing rate  and then, they reach a maximum of utility afterwhihc, additional units do not generate utility, they decrease it

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