At the point at which total utility is at a maximum,
A) marginal utility is at a minimum.
B) marginal utility is negative.
C) marginal utility is zero.
D) marginal utility is equal to total utility.

Question

Quizplus · Accepted Answer

At the point where total utility is at a maximum, marginal utility is zero. This is because at this point, any additional unit consumed would bring no increase or decrease in the total utility. Once marginal utility becomes negative, it means that the additional unit consumed decreases the total utility. Therefore, the correct choice is C) marginal utility is zero.

At the Point at Which Total Utility Is at a Maximum