If total utility is increasing, marginal utility
A) is positive but may be either increasing or decreasing.
B) must also be increasing.
C) may be either positive or negative.
D) will be increasing at an increasing rate.

Question

If total utility is increasing, marginal utility 
A) is positive but may be either increasing or decreasing. 
B) must also be increasing. 
C) may be either positive or negative. 
D) will be increasing at an increasing rate.

Quizplus · Accepted Answer

When total utility is increasing, it means that the addition of the last unit consumed is bringing more satisfaction to the consumer. This indicates that marginal utility is positive. However, it is not necessary for marginal utility to be increasing like total utility. It may start to decrease after a certain point where the consumer starts to experience diminishing marginal utility. Therefore, choice A is the best answer.

If Total Utility Is Increasing, Marginal Utility