When the total utility from consuming one good is maximized, marginal utility is
A) maximized.
B) minimized.
C) zero.
D) positive.

Question

Quizplus · Accepted Answer

When the total utility from consuming one good is maximized, the marginal utility, which is the additional satisfaction gained from consuming one more unit of the good, is zero. This is because at the point of maximum total utility, consuming more of the good does not increase total satisfaction, indicating that the marginal utility has dropped to zero.

When the Total Utility from Consuming One Good Is Maximized