When Marginal Utility is positive, Total Utility
A
Increases
B
Decreases
C
Remains constant
D
Is highest
Correct Answer: Increases
When Marginal Utility is positive, Total Utility Decreases. When we say that the total utility is increasing at a diminishing rate, we mean that amount of change in total utility is decreasing with the consumption of every extra unit which is nothing but marginal utility.