When marginal utility declines and is positive Correct statements abo
Right Answer is: A
Correct statements about relationship between Total Utility & Marginal Utility are:
• TU increase as long as MU is positive
• TU is maximum when MU = 0.
• TU starts declining when MU is negative.
• Decrease in MU implies that TU increases at diminishing rate.
• When marginal utility declines and is positive Total utility increases at a decreasing rate.