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Total Utility and Marginal Utility Quiz
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Total Utility and Marginal Utility Quiz

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@BalancedAbundance

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Questions and Answers

True or false: Total utility (TU) increases as long as marginal utility (MU) is positive?

True

True or false: Total utility (TU) is maximum when marginal utility (MU) is negative?

False

True or false: Total utility (TU) starts diminishing when marginal utility (MU) is negative?

True

True or false: Decreasing marginal utility (MU) implies that total utility (TU) is increasing at a decreasing rate?

<p>True</p> Signup and view all the answers

True or false: When total utility (TU) is maximum, marginal utility (MU) reaches zero?

<p>True</p> Signup and view all the answers

Study Notes

Relationship between Total Utility and Marginal Utility

  • Total utility (TU) increases as long as marginal utility (MU) is positive.
  • Total utility (TU) is maximum when marginal utility (MU) reaches zero, not when MU is negative.
  • Total utility (TU) does not start diminishing when marginal utility (MU) is negative; instead, it starts diminishing when MU becomes zero.
  • Decreasing marginal utility (MU) implies that total utility (TU) is increasing at a decreasing rate.

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Description

Test your knowledge on the relationship between Total Utility (TU) and Marginal Utility (MU) with this quiz. Explore how TU increases, reaches a maximum, and starts diminishing as MU changes.

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