If marginal utility is positive but diminishing, as more units of a good are consumed, then the total utility from the good must be
A) falling.
B) positive and rising at an increasing rate.
C) positive and rising at a decreasing rate.
D) positive and rising at any rate.

Question

Quizplus · Accepted Answer

When marginal utility is positive but diminishing, each additional unit consumed adds to total utility, but by a smaller amount each time. Therefore, total utility is positive and rising at a decreasing rate.

If Marginal Utility Is Positive but Diminishing, as More Units