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Relationship between the Short Run Average and Marginal Cost Curves

What will be ...

Question

What will be the condition of total utility, when marginal utility stays positive?

A

Maximum

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B

Diminishing

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C

Increasing

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D

Minimum

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Solution

The correct option is A Increasing
When marginal utility diminishes but stays positive then total utility increases at a decreasing rate as it is the summation of all marginal utilities.

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