Question

Total utility

A. is equal to the sum of the marginal utilities of all units consumed.
B. has a constant rate of increase as a person consumes more and more of a good.
C. cannot decrease as a person consumes more and more of a good.
D. is negative when marginal utility is declining.

Answer 1

Option A.

Step-by-step explanation:

Option “A” is the correct answer because the total utility is the total degree of fulfillment or satisfaction that a customer gets through the utilization of a particular good or service. Every individual unit of a commodity has its very own marginal utility, and the total utility is just a summation of marginal utilities. However, when total utility declines the marginal utility becomes negative.