When is marginal utility equal to zero?
A)When TU is zero.
B)When MU is at its maximum.
C)When TU is at its maximum.
D)When MU is at its minimum.

Name: When is marginal utility equal to zero? A)When TU is zero. B)When MU is at its maximum. C)When TU is at its maximum. D)When MU is at its minimum.
Brand: Quizplus
Rating: 4.9 (32 reviews)

Question

Quizplus · Accepted Answer

Marginal utility (MU) is equal to zero when total utility (TU) is at its maximum because at this point, consuming an additional unit of the good or service does not increase the total satisfaction received.

When Is Marginal Utility Equal to Zero