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Utility & Consumer's Equilibrium · Question 10 of 73

Question 10

MediumOriginal question

When marginal utility is positive but falling, total utility

Options for question 10

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. Each extra unit still adds to TU because MU is positive.

  2. But each adds less than the one before, so TU rises more and more slowly.

Concept
TU when MU falls but stays positive
Typical time
70 s
Your time
—
The rule this testsTotal and marginal utility
Practise this chapter →

Ten questions from Utility & Consumer's Equilibrium, at your own pace.

Practise this chapter →

Ten questions from Utility & Consumer's Equilibrium, at your own pace.