Question

Which of the following is correct?
A) There is no firm mathematical relationship between marginal utility and total utility.
B) Total utility is equal to the change in marginal utility from consuming an additional unit of a product.
C) If marginal utility is diminishing and is a positive amount, total utility will increase.
D) If marginal utility is diminishing, total utility must also be diminishing.

Answer 1

Answer:

C

Explanation:

The relationship between Total utility and Marginal utility states that "when marginal Utility decreases Total utility increases but at a decreasing rate. This is the reason even when marginal Utility decreases total utility will increase.