when mu is decreasing,tu incease at_______?
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According to the law of diminishing marginal utility, when marginal utility diminishes, total utility increases at a decreasing rate. Marginal utility is the rate of change in total utility, thus, it decides the slope of total utility curve.
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total utilityincreases with increasingquantity of a single item untilmarginal utility = 0; thereafter,total utility declines when marginal utilitybecomes negative.Positive marginal utility occurs when the consumption of an additional item increases the total utility, while negative marginal utility occurs when the consumption of an additional item decreases the total utility.
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