Which of the following is correct?
A) There is no firm mathematical relationship between marginal utility and total utility.
B) Total utility is equal to the change in marginal utility from consuming an additional unit of a product.
C) If marginal utility is diminishing and is a positive amount, total utility will increase.
D) If marginal utility is diminishing, total utility must also be diminishing.
Ans: C) If marginal utility is diminishing and is a positive amount, total utility will increase.
You might also like to view...
All else equal, a decrease in government borrowing is likely to cause a(n):
A) upward movement along the credit demand curve. B) rightward shift of the credit demand curve. C) leftward shift of the credit demand curve. D) downward movement along the credit demand curve.
Refer to above figure. Given the opportunity to sell at world prices, the marginal (opportunity) cost of selling a ton domestically is what?
What will be an ideal response?