Which of the following statements is true about the total utility provided by a good?
a. Total utility can never be negative.
b. Total utility is maximized when marginal utility is maximized.
c. Total utility continues to increase as more of the good is consumed.
d. Total utility is maximized when marginal utility is zero (for total utility > 0).
e. Total utility is maximized when marginal utility is zero (for total utility < 0).
d
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If autonomous spending decreases, then
A) the expenditure multiplier means that equilibrium expenditure increases by a larger amount. B) the expenditure multiplier means that equilibrium expenditure increases by a smaller amount. C) equilibrium expenditure does not change. D) the expenditure multiplier means that equilibrium expenditure decreases by a larger amount. E) equilibrium expenditure decreases by the same amount.
The large increases in the deficit during the 1980s in the United States were associated with
A) large increases in public saving. B) no change in public saving. C) large increases in private saving. D) all of the above E) none of the above