Question 10
MediumOriginal questionWhen marginal utility is positive but falling, total utility
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
Each extra unit still adds to TU because MU is positive.
But each adds less than the one before, so TU rises more and more slowly.
- Concept
- TU when MU falls but stays positive
- Typical timeTypical
- 70 s
- Your timeYours
- —
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Ten questions from Utility & Consumer's Equilibrium, at your own pace.