as long as total utility is increasing we know that marginal

as long as total utility is increasing we know that marginal utility is:

a. positive

b. decreasing

c. increasing

d. negative

Solution

As long as total utility is increasing we know that the marginal utility is positive. Hence the correct answer is (A). There is a relationship between total utility and marginal utility. When the MU is positive, TU is increasing. When MU is 0, TU reaches the maximum. When the MU becomes negative, TU starts to fall.