When total utility is increasing at decreasing rate:

CA Foundation · Business Economics · PYQS · May 2025
When total utility is increasing at decreasing rate:
(A) A. Marginal utility is equal to total utility.
(B) B. Marginal utility is decreasing but remains positive.
(C) C. Marginal utility becomes negative.
(D) D. Marginal utility is equal to zero.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Marginal utility is decreasing but remains positive.

Topics: Theory of Demand and Supply

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