When marginal utility is positive, total utility is
A) increasing.
B) zero.
C) at its minimum.
D) decreasing.

Question

Quizplus · Accepted Answer

When marginal utility is positive, it means that the additional utility obtained from consuming an additional unit of a good or service is positive. This implies that total utility is also increasing, as the consumer is gaining more satisfaction from each additional unit consumed. Therefore, the best choice is A) increasing.

When Marginal Utility Is Positive, Total Utility Is