Q196
When Marginal Utility is positive, Total Utility
A.
Increases
AnswerB.
Decreases
C.
Remains constant
D.
Is highest
Answer: Option A
Solution
Answer: Option A
Solution:
When Marginal Utility is positive, Total Utility Decreases. When we say that the total utility is increasing at a diminishing rate, we mean that amount of change in total utility is decreasing with the consumption of every extra unit which is nothing but marginal utility.