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question mark

When total utility is maximum, marginal utility becomes ___________.
A)
zero
B)
unity
C)
positive
D)
negative

aman p , 5 Years ago
Grade 12
anser 2 Answers
Rituraj Tiwari
When total utility is maximumat the 5th unit,marginal utilityis zero. It is the point of satiety for the consumer.When total utilityis decreasing,marginal utilityis negative (the 6th and the 7th units).
Last Activity: 5 Years ago
Vikas Amritiya

Total utility is the sum of all marginal utilities derived from consumption of each additional unit of a commodity. When marginal utility is zero, the consumer derives no further utility from consumption and any further consumption will lead to negative marginal utility. Thus, the total utility is maximum at this point and any further consumption of that commodity will lead to a diminishing total utility.

Last Activity: 5 Years ago
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