Which of the following is correct?
A)If total utility is increasing, then marginal utility is decreasing.
B)If total utility is decreasing, then marginal utility is increasing.
C)If total utility is increasing, then marginal utility is zero.
D)If total utility is increasing, then marginal utility is greater than zero.
E)If marginal utility is increasing, then marginal utility is less than zero.

Question

Quizplus · Accepted Answer

Total utility increases when the additional satisfaction (marginal utility) from consuming an extra unit of a good is positive. Marginal utility greater than zero means each additional unit consumed adds to the total utility, hence it is increasing.

Which of the Following Is Correct