As marginal utility declines but remains positive, then
A) total utility continues to increase but at a decreasing rate.
B) total utility also declines.
C) total utility is unaffected.
D) none of the above.

Question

Quizplus · Accepted Answer

Marginal utility measures the additional utility gained from consuming one more unit of a good. As more units are consumed, the marginal utility generally declines. However, as long as the marginal utility remains positive (i.e. the additional unit of the good provides some level of satisfaction), the total utility will continue to increase. However, this increase in total utility will occur at a decreasing rate because the additional satisfaction gained from each additional unit of the good is declining. Therefore, choice A is the best answer.

As Marginal Utility Declines but Remains Positive, Then