Consider the following statements. 1. TV increases so long as MU is positive. 2. TU = $$\sum $$AU 3. When MU is negative, TV starts increasing. Which of the statement(s) given above is/are correct?

The correct answer is: A. Only 1.

Statement 1 is correct. Total utility (TU) increases so long as marginal utility (MU) is positive. This is because MU measures the additional satisfaction that a consumer gets from consuming an additional unit of a good. When MU is positive, the consumer is getting more satisfaction from consuming more of the good, so TU will increase.

Statement 2 is incorrect. Total utility is not equal to the sum of marginal utilities. This is because MU is not constant. As a consumer consumes more of a good, MU will eventually decline. This is because the consumer will get less satisfaction from consuming additional units of the good. When MU declines, TU will eventually reach a maximum and then start to decline.

Statement 3 is incorrect. When MU is negative, TV starts decreasing. This is because MU measures the additional satisfaction that a consumer gets from consuming an additional unit of a good. When MU is negative, the consumer is getting less satisfaction from consuming more of the good, so TU will decrease.