GENERAL KNOWLEDGE

Detailed explanation-1: -Positive marginal utility occurs when the consumption of an additional item increases the total utility. On the other hand, negative marginal utility occurs when the consumption of one more unit decreases the overall utility.

Detailed explanation-2: -Relationship Between Total Utility and Marginal Utility This reflects that when total utility increases, marginal utility is positive. Since total utility increases at a decreasing rate marginal utility keeps on falling. When total utility is maximum, marginal utility is zero.

Detailed explanation-3: -Marginal utility is the rate of total utility and thus when marginal utility is negative, total utility starts decreasing as at this point of time consumption of an additional unit of that product yields negative results.

Detailed explanation-4: -The law of diminishing marginal utility states that all else equal, as consumption increases, the marginal utility derived from each additional unit declines.