Which of the following is correct?
A)There is no firm mathematical relationship between marginal utility and total utility.
B)Total utility is equal to the change in marginal utility from consuming an additional unit of a product.
C)If marginal utility is diminishing and is a positive amount, total utility will increase.
D)If marginal utility is diminishing, total utility must also be diminishing.

Question

Quizplus · Accepted Answer

C is correct because when marginal utility is positive, it means that each additional unit consumed adds to the total utility, albeit at a decreasing rate. This is the principle of diminishing marginal utility, which states that as consumption increases, the marginal utility derived from each additional unit decreases, but total utility still increases as long as marginal utility is positive.

Which of the Following Is Correct