Which of the following statement is TRUE with regard to total utility
A)total utility is the utility derived from last unit
B)total utility increases at a diminishing range
C)as consumption increases total utility goes on diminishing
D)at saturation point total utility is negative

Question

Quizplus · Accepted Answer

Total utility increases as more of a good is consumed, but it does so at a diminishing rate due to the law of diminishing marginal utility. This means that while total utility continues to rise with each additional unit consumed, the rate of increase slows down.

Which of the Following Statement Is TRUE with Regard to Total