Suppose your marginal utility from consuming the 3rd slice of cake is zero; then your total utility from consuming cake is
A)maximised.
B)decreasing.
C)negative.
D)increasing.

Question

Quizplus · Accepted Answer

When the marginal utility from consuming an additional unit of a good (in this case, the 3rd slice of cake) is zero, it means that consuming that unit does not increase the consumer's satisfaction. This typically indicates that the consumer has reached a point of maximum satisfaction or total utility from consuming that good, hence total utility is maximised.

Suppose Your Marginal Utility from Consuming the 3rd Slice of Cake