WAEC - Economics (2016 - No. 25)
One relationship between marginal utility and total utility. When total is
rising, marginal utility is rising
falling, marginal utility is negative
maximum, marginal utility is maximum
falling, marginal utility is rising
Explication
The following are the various relationships between total and marginal utility.
- When marginal utility is positive , total utility increases
- When marginal utility is zero , total utility is at maximum
- When marginal utility is negative , total utility decreases