If consumption of an extra unit of a product delivers a positive marginal utility,then consumption of that additional unit would mean
A)that total utility is also zero.
B)that total utility would not change.
C)that total utility would be increasing.
D)that total utility would be decreasing.
E)that the consumer would no longer receive any satisfaction from any consumption of this good.

Question

Quizplus · Accepted Answer

If the consumption of an extra unit of a product delivers a positive marginal utility, it means that the total utility is increasing. This is because the additional unit adds to the overall satisfaction derived from consuming the product, therefore increasing the total utility. Option A and E are incorrect because total utility is not necessarily zero or ceased after the consumption of the additional unit. Option B and D are incorrect because total utility would either remain the same or decrease if marginal utility is zero or negative respectively.

If Consumption of an Extra Unit of a Product Delivers