When total utility is at a maximum, marginal utility is:
A) rising.
B) at its average value.
C) at a maximum.
D) zero.

Question

Quizplus · Accepted Answer

When total utility is at a maximum, marginal utility is zero. This means that the last unit of consumption did not add any additional satisfaction to the consumer. In other words, the consumer has reached the point of satiation, and further consumption will not increase their overall utility.

When Total Utility Is at a Maximum, Marginal Utility Is