As marginal utility increases,total utility
A) increases by the same amount.
B) decreases by the same amount.
C) increases by a multiplicative of marginal utility.
D) decreases at an increasing rate.
E) increases at an increasing rate.

Question

Quizplus · Accepted Answer

As marginal utility increases, it means that each additional unit of the good consumed is providing more and more satisfaction or utility to the consumer. As a result, the total utility will also increase at an increasing rate. This is because the additional units are adding more and more value to the consumer's overall satisfaction.

As Marginal Utility Increases,total Utility