Asked by
Linda Felan
on Nov 25, 2024Verified
Which of the following statements is correct?
A) When marginal utility is decreasing, an increase in the quantity consumed will decrease total utility.
B) When marginal utility is positive, an increase in the quantity consumed will decrease total utility.
C) When marginal utility is positive, an increase in the quantity consumed will increase total utility.
D) When marginal utility is zero, an increase in the quantity consumed will make total utility zero.
Marginal Utility
The extra pleasure a customer receives from consuming an additional unit of a product or service.
Total Utility
The total satisfaction received by consuming a particular amount of goods or services.
- Realize the concordance between total utility and marginal utility.
Verified Answer
SJ
Learning Objectives
- Realize the concordance between total utility and marginal utility.