Which of the following is true about total utility?
A)It cannot decrease as a person consumes more and more of a good.
B)It has a constant rate of increase as a person consumes more and more of a good.
C)It is equal to the sum of the marginal utilities of all units consumed.
D)It is negative when marginal utility is declining.

Question

Quizplus · Accepted Answer

Total utility is the overall satisfaction a person receives from consuming a certain amount of a good. It is equal to the sum of the marginal utilities of all units consumed, as each additional unit adds to the overall satisfaction. Therefore, choice C is the correct answer. Choice A is false because total utility can decrease if the marginal utility of additional units consumed is negative. Choice B is false because the rate of increase of total utility can slow down or even decrease as a person consumes more of a good. Choice D is false because total utility is the sum of all marginal utilities, it cannot be negative.

Which of the Following Is True About Total Utility