Which of the following statements is correct?
A)When marginal utility is decreasing, an increase in the quantity consumed will decrease total utility.
B)When marginal utility is positive, an increase in the quantity consumed will decrease total utility.
C)When marginal utility is positive, an increase in the quantity consumed will increase total utility.
D)When marginal utility is zero, an increase in the quantity consumed will make total utility zero.

Question

Quizplus · Accepted Answer

When marginal utility is positive, it means that each additional unit consumed adds to the total utility, hence increasing the total utility.

Which of the Following Statements Is Correct