Question : When MU is positive, what happens to TU?
Option 1: It decreases.
Option 2: It becomes the highest.
Option 3: It remains constant.
Option 4: It increases.
Correct Answer: It increases.
Solution : As long as MU is positive, TU rises with an increase in commodity consumption. TU increases at a decreasing rate during this phase because MU from each successive unit tends to diminish.