Which of the following statements is TRUE with respect to total utility and marginal utility?
A) Marginal utility always rises as total utility increases.
B) Marginal utility can decline as total utility rises.
C) Total utility is not related to marginal utility.
D) Total utility can decline while marginal utility rises.

Question

Quizplus · Accepted Answer

Marginal utility can initially rise, but eventually decline as more units are consumed, while total utility can continue to rise at a decreasing rate or even begin to decline. Therefore, B is the only statement that is true.

Which of the Following Statements Is TRUE with Respect to Total