If total utility from the consumption of some product is increasing as more units are consumed,then marginal utility must be
A)decreasing at an increasing rate.
B)negative.
C)increasing.
D)increasing at an increasing rate.
E)positive.

Question

Quizplus · Accepted Answer

If total utility is increasing, it means that adding more units is bringing additional satisfaction to the consumer. This implies that marginal utility, which is the additional satisfaction from consuming one more unit, must be positive. Therefore, option E is the correct answer. None of the other options explain the situation where total utility is increasing with respect to the number of units consumed.

If Total Utility from the Consumption of Some Product Is