Total utility

A. is equal to the sum of the marginal utilities of all units consumed.

B. has a constant rate of increase as a person consumes more and more of a good.

C. cannot decrease as a person consumes more and more of a good.

D. is negative when marginal utility is declining.

Question

Elisa Rasmussen

Social Studies

29 April, 13:35

Total utility

A. is equal to the sum of the marginal utilities of all units consumed.

B. has a constant rate of increase as a person consumes more and more of a good.

C. cannot decrease as a person consumes more and more of a good.

D. is negative when marginal utility is declining.

+5

Answers (1)

Know the Answer?

Yareli Fleming · Answer 1

Option A.

Explanation:

Option "A" is the correct answer because the total utility is the total degree of fulfillment or satisfaction that a customer gets through the utilization of a particular good or service. Every individual unit of a commodity has its very own marginal utility, and the total utility is just a summation of marginal utilities. However, when total utility declines the marginal utility becomes negative.

Total utilityA. is equal to the sum of the marginal utilities of all units consumed.B. has a constant rate of increase as a person consumes more and more of a good.C. cannot decrease as a person consumes more and more of a good.D. is negative when marginal utility is declining.

Total utility

A. is equal to the sum of the marginal utilities of all units consumed.

B. has a constant rate of increase as a person consumes more and more of a good.

C. cannot decrease as a person consumes more and more of a good.

D. is negative when marginal utility is declining.