When marginal utility is positive but decreasing, total utility is
A) decreasing.
B) negative.
C) increasing.
D) zero.

Question

Quizplus · Accepted Answer

When marginal utility is positive but decreasing, it means that the additional satisfaction gained from consuming each additional unit of a good decreases as we consume more of it. However, it still adds to the total utility. As a result, total utility will increase but at a decreasing rate. So, our best choice is C, which means increasing.

When Marginal Utility Is Positive but Decreasing, Total Utility Is