The table given below depicts the total utility derived from the consumption of a good.Table 7.1

-When marginal utility is positive and increasing, then
A)total utility must be negative.
B)total utility must be increasing at an increasing rate.
C)total utility must be increasing at a decreasing rate.
D)total utility is decreasing.
E)total utility is at its maximum point.

Question

The table given below depicts the total utility derived from the consumption of a good.Table 7.1
 
-When marginal utility is positive and increasing, then
A)total utility must be negative. 
B)total utility must be increasing at an increasing rate. 
C)total utility must be increasing at a decreasing rate. 
D)total utility is decreasing. 
E)total utility is at its maximum point.

Quizplus · Accepted Answer

When marginal utility is positive and increasing, it means that each additional unit of the good consumed is adding more and more to the total utility. Therefore, the total utility must be increasing, but it is also increasing at an increasing rate because the marginal utility is getting larger with each additional unit consumed.

The Table Given Below Depicts the Total Utility Derived from the Consumption