Practise defining and calculating total and marginal utility from utility tables, curves and consumer-choice data using CAIE Economics A2 questions and mark schemes.
Which statement about the concept of utility is correct?
Diminishing marginal utility means that producers become less efficient the more they produce.
If marginal utility is above average utility, average utility must be rising.
The equi-marginal principle says that a consumer gets equal total satisfaction from each item purchased.
Total utility continually rises as the level of consumption rises.
B