Which of the following is true?
A) A good for which the marginal utility of the last unit of a good consumed is greater will provide more total utility from consumption of the good.
B) If marginal utility is positive but diminishing, total utility increases with consumption of a good.
C) If marginal utility is diminishing, total utility must be diminishing.
D) Total utility is equal to the change in marginal utility from consuming an added unit of a product.

Question

Quizplus · Accepted Answer

If a good has positive marginal utility, it means that consuming an additional unit of the good adds to the total utility. However, if the marginal utility is diminishing, it means that each additional unit adds less to the total utility than the previous unit. Despite this, the total utility can still increase with consumption as long as the marginal utility remains positive.

Which of the Following Is True