The table given below depicts the total utility derived from the consumption of a good.Table 7.1

-Which of the following statements about marginal utility is correct?
A)When marginal utility is negative, an increase in the quantity will increase total utility.
B)When marginal utility is decreasing, an increase in quantity will decrease total utility.
C)When marginal utility is positive, an increase in quantity will decrease total utility.
D)When marginal utility is zero, an increase in quantity will leave total utility unchanged.
E)When total utility is increasing, marginal utility will be negative.

Question

The table given below depicts the total utility derived from the consumption of a good.Table 7.1
 
-Which of the following statements about marginal utility is correct?
A)When marginal utility is negative, an increase in the quantity will increase total utility. 
B)When marginal utility is decreasing, an increase in quantity will decrease total utility. 
C)When marginal utility is positive, an increase in quantity will decrease total utility. 
D)When marginal utility is zero, an increase in quantity will leave total utility unchanged. 
E)When total utility is increasing, marginal utility will be negative.

Quizplus · Accepted Answer

When marginal utility is zero, it means that the last unit consumed did not add to or detract from the total utility. Therefore, an increase in quantity will not change total utility.

The Table Given Below Depicts the Total Utility Derived from the Consumption