When we graph total utility, the total utility curve will
A) always be increasing.
B) always be decreasing.
C) be increasing as long as marginal utility is positive.
D) be horizontal if marginal utility is positive.

Question

Quizplus · Accepted Answer

Total utility will increase as long as marginal utility is positive, but once marginal utility turns negative, total utility will start to decrease. Therefore, the total utility curve will eventually flatten out or start to decrease once marginal utility becomes negative.

When We Graph Total Utility, the Total Utility Curve Will