what is the difference between zero utility and Negative utility?
Answers
Total utility is the sum of all marginal utilities derived from consumption of each additional unit of a commodity. When marginal utility becomes negative the addition to total utility will be negative, thus, leading to diminishing total utility.
Answer:
Zero marginal utility
Zero marginal utility is what happens when consuming more of an item brings no extra measure of satisfaction. For example, you might feel fairly full after two slices of cake and wouldn't really feel any better after having a third slice. In this case, your marginal utility from eating cake is zero.
Negative utility?
The concept of marginal utility is used by economists to determine how much of an item consumers are willing to purchase. ... On the other hand, negative marginal utility occurs when the consumption of one more unit decreases the overall utility.