1.2 Individual economic decision making (A-level only)

The diagram below shows a consumer's marginal utility ( $M U$ ) curve for consuming additional weekly units of a premium streaming subscription.

Marginal Utility Curve

Based on the diagram and the theory of diminishing marginal utility, which of the following statements is correct?

Between $0$ and $Q_2$ units of consumption, total utility is increasing at an increasing rate.

At consumption level $Q_2$ , total utility is maximised because marginal utility is zero.

Beyond $Q_2$ units of consumption, total utility is negative because marginal utility is negative.

At consumption level $Q_3$ , average utility must be negative because marginal utility is negative.

1.2 Individual economic decision making (A-level only) Questions

The diagram below shows a consumer's marginal utility ( $M U$ ) curve for consuming additional weekly units of a premium streaming subscription.

Marginal Utility Curve

Based on the diagram and the theory of diminishing marginal utility, which of the following statements is correct?

Between $0$ and $Q_2$ units of consumption, total utility is increasing at an increasing rate.

At consumption level $Q_2$ , total utility is maximised because marginal utility is zero.

Beyond $Q_2$ units of consumption, total utility is negative because marginal utility is negative.

At consumption level $Q_3$ , average utility must be negative because marginal utility is negative.