Which of the following statement is TRUE with regard to total utility
A)total utility is the utility derived from last unit
B)total utility increases at a diminishing range
C)as consumption increases total utility goes on diminishing
D)at saturation point total utility is negative

Question

Quizplus · Accepted Answer

Total utility increases as more of a good is consumed, but it does so at a diminishing rate due to the law of diminishing marginal utility. This means that each additional unit of the good consumed adds less to the total utility than the previous unit.

Which of the Following Statement Is TRUE with Regard to Total