Question

Marginal utility and total utility are equal at the initial stage.

• A. True
• B. False

Answer 1

The correct option is A True

Marginal utility is the extra satisfaction a consumer gets when consuming one more of the same good. Total utility is the is the whole satisfaction a consumer gains from consuming all of the same good. The first good a consumer consumes, the total and marginal utility will be the same. But, after that total utility will rise and marginal utility will begin to fall.