If marginal utility is positive but diminishing, then total utility must be ________ as consumption of the good increases.
A) decreasing
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, total utility is still increasing, but at a decreasing rate because each additional unit of consumption adds less to total utility than the previous one.

If Marginal Utility Is Positive but Diminishing, Then Total Utility