One relationship between marginal utility and total utility. When the total is?

By: |Published on: Nov 7|Categories: Economics WAEC| 0 comments

A. rising, marginal utility is rising
B. falling, marginal utility is negative
C. maximum, marginal utility is maximum
D. falling, marginal utility is rising

Correct Answer: Option B

B. falling, marginal utility is negative

Explanation

The following are the various relationships between total and marginal utility.

  • When marginal utility is positive, total utility increases
  • \When marginal utility is zero, total utility is at maximum
  • When marginal utility is negative, total utility decreases

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