If a consumer's total utility increases when another unit of a good is consumed,which of the following is true? Marginal utility must be
A) negative.
B) equal to one.
C) positive.
D) increasing.
E) some amount, but more information is needed to determine if marginal utility is positive, negative, or equal to zero.

Question

Quizplus · Accepted Answer

If a consumer's total utility increases when another unit of a good is consumed, it means that the additional unit provides some level of satisfaction to the consumer. This satisfaction is measured by marginal utility, which is the increase in total utility when one more unit of the good is consumed. Since total utility is increasing, it follows that marginal utility must also be positive. Therefore, the correct choice is (C) positive.

If a Consumer's Total Utility Increases When Another Unit of a Good