Question

If marginal utility of apples is diminishing and is a positive amount, consuming one more apple will cause

A. total utility to decrease.
B. a consumer to get no satisfaction from consuming apples.
C. a consumer’s total utility to increase.
D. a consumer to go beyond her optimal consumption of apples.

Answer 1

If marginal utility of apples is diminishing and is a positive amount, consuming one more apple will cause total utility increases as the marginal utility is still positive.