When total utility is increasing,marginal utility
A)is negative.
B)must be between zero and one.
C)is either increasing or decreasing.
D)is either positive or negative.
E)is also increasing.

Question

Quizplus · Accepted Answer

When total utility is increasing, marginal utility can be either increasing or decreasing. Marginal utility is the additional satisfaction a consumer gets from consuming one more unit of a good or service, and it can vary depending on the amount consumed already. It may increase at first due to the law of diminishing marginal utility, but eventually, it may start to decrease as the consumer becomes satiated or reaches a point of diminishing returns. Therefore, marginal utility can go either way when total utility is increasing.

When Total Utility Is Increasing,marginal Utility