If marginal utility is positive as consumption increases,
A)the consumer will not experience diminishing marginal utility.
B)total utility will remain high and constant as consumption increases.
C)total utility will increase as consumption increases.
D)the demand curve will have a positive slope.

Question

Quizplus · Accepted Answer

If marginal utility is positive as consumption increases, this means that the consumer is gaining more utility from each additional unit consumed, leading to an increase in total utility. Therefore, total utility will increase as consumption increases. Option A is incorrect as positive marginal utility does not imply that there will not be diminishing marginal utility, only that it is currently positive. Option B is incorrect because, in reality, total utility is subject to diminishing marginal utility, even if marginal utility is initially positive. Option D is not necessarily true as positive marginal utility does not necessarily mean that the demand curve will have a positive slope.

If Marginal Utility Is Positive as Consumption Increases