Question

multiple choice what will be the condition o
f total utility when Marginal utility stany positive (a)Maxium (b)Diminishing (c) Increasing (d) Minimum​

Answer 1

Answer :

(c) Increasing

Explanation :

When marginal utility decreases but positive, Total utility increases at diminishing rate.

When marginal utility is 0, Total utility is maximum.

When marginal utility becomes negative, total utility starts decreasing.

Remember that marginal utility decreases after the consumption of succeeding unit.