When total utility, U(x)is maximized, marginal utility, MUx is:
A)constant.
B)rising.
C)maximized.
D)zero.

Question

Quizplus · Accepted Answer

When total utility is maximized, marginal utility is zero. This is because marginal utility is the additional satisfaction gained from consuming one more unit of a good, and when total utility is at its maximum, the additional satisfaction gained from consuming one more unit is zero. Therefore, the best choice is D. When total utility is maximized, marginal utility becomes zero. This is because marginal utility is the additional satisfaction gained from consuming one more unit of a good, and when total utility is at its maximum, the consumer has reached a point where they are no longer gaining any additional satisfaction from consuming more units of the good. Therefore, MUx becomes zero.

When Total Utility, U(x)is Maximized, Marginal Utility, MUx Is