Use the following to answer question(s):
-(Exhibit: Utility) Total utility is maximized at the _______ unit.
A) first
B) second
C) fourth
D) sixth

Question

Use the following to answer question(s): 
-(Exhibit: Utility) Total utility is maximized at the _______ unit.
A) first 
B) second 
C) fourth 
D) sixth

Quizplus · Accepted Answer

Total utility increases with each additional unit until the fourth unit where it reaches its peak. After that, total utility starts to decline, making the fourth unit the point of maximum satisfaction or utility. Therefore, the best choice is to consume four units.

Use the Following to Answer Question(s)