Total utility is at a maximum when marginal utility is zero.

Name: Total utility is at a maximum when marginal utility is zero.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true as total utility is the sum of all marginal utilities and reaches its maximum point when the last unit consumed provides zero additional utility. At this point, any additional unit would actually decrease the total utility. Therefore, the condition for maximum total utility is that the marginal utility is zero.

Total Utility Is at a Maximum When Marginal Utility Is