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MICROECONOMICS CH : 3 CONSUMER'S EQUILIBRIUM UTILITY ANALYSIS — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsMICROECONOMICS CH : 3 CONSUMER'S EQUILIBRIUM UTILITY ANALYSIS3 Marks
Question
Higher consumption of a commodity may mean lower and lower marginal utility, but it never implies negative total utility. Do you agree?
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Answer

Yes. As the consumer increases the consumption, the marginal utility derived from the consumption of a commodity must diminish as more units of that commodity are consumed at a point of time, and even can be negative. But the total utility or total satisfaction derived from that commodity can never be negative. A rational consumer would never buy a commodity which offers only negative satisfaction.

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