Which of the following statements is true with respect to total utility and marginal utility?
A) Marginal utility always rises as total utility increases.
B) Marginal utility can decline as total utility rises.
C) Total utility is not related to marginal utility.
D) Total utility can decline while marginal utility rises.

Question

Quizplus · Accepted Answer

Marginal utility can decline as total utility rises due to the law of diminishing marginal utility. As a person consumes more of a good, the additional satisfaction from each additional unit consumed may decrease, leading to a declining marginal utility. However, total utility can still increase as long as the additional units consumed provide some level of satisfaction. Therefore, it is possible for total utility to increase while marginal utility declines.

Which of the Following Statements Is True with Respect to Total