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What will be the condition of total utility when marginal utility stays positive ?
Maximum
Diminishing
Increasing
Minimum
- Option 1: Maximum
- Total utility reaches its maximum when marginal utility becomes zero because additional consumption no longer adds to overall satisfaction.
- Option 2: Diminishing
- Total utility may increase at a decreasing rate when marginal utility diminishes but remains positive.
- Option 3: Increasing
- Total utility continues to increase as long as marginal utility is positive, as each unit of consumption adds to total satisfaction.
- Option 4: Minimum
- This is incorrect because having a positive marginal utility means total utility has not reached its minimum.
By: santosh ProfileResourcesReport error
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