If 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 continues to be zero.
D) none of the above.

Question

Quizplus · Accepted Answer

When marginal utility declines but remains positive, it means that each additional unit of a good or service is still providing some level of satisfaction, but that satisfaction is decreasing. Therefore, total utility continues to increase but at a decreasing rate because the additional satisfaction provided by each additional unit is smaller than the previous one.

If Marginal Utility Declines but Remains Positive, Then