Question

when the consumer consumes a same product at same time marginal utility of the derived product decreases and utility become negative. state whether the statement is true or false. explain this with the help of a diagram.
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Answer 1

Answer:

Marginal utility tells how much marginal value or satisfaction a consumer gets from consuming an additional unit of good. ... A consumer buys goods as long as the marginal utility for each additional unit exceeds its price. A consumer stops consuming additional goods as soon as the price exceeds the marginal utility.

Answer 2

Answer:

The Law of Diminishing Marginal Utility directly relates to the concept of diminishing prices. As the utility of a product decreases as its consumption increases, consumers are willing to pay smaller dollar amounts for more of the product.