The table given below depicts the total utility derived from the consumption of a good.Table 7.1

-When total utility is at a maximum, marginal utility is:
A)increasing.
B)at a minimum.
C)equal to zero.
D)decreasing.
E)at a maximum.

Question

The table given below depicts the total utility derived from the consumption of a good.Table 7.1
 
-When total utility is at a maximum, marginal utility is:
A)increasing. 
B)at a minimum. 
C)equal to zero. 
D)decreasing. 
E)at a maximum.

Quizplus · Accepted Answer

When total utility is at a maximum, marginal utility is equal to zero. This is because the additional satisfaction gained from consuming an extra unit of the good is zero at this point, which means further consumption will not increase total utility. If marginal utility was increasing or at a maximum, then total utility would not be at a maximum. If marginal utility was decreasing, then consuming additional units of the good would actually decrease total utility. Therefore, the best answer is C.

The Table Given Below Depicts the Total Utility Derived from the Consumption