If marginal utility is zero, total utility is
A) falling.
B) increasing.
C) at its maximum.
D) negative.

Name: If marginal utility is zero, total utility is A) falling. B) increasing. C) at its maximum. D) negative.
Brand: Quizplus
Rating: 5.0 (35 reviews)

Question

Quizplus · Accepted Answer

When marginal utility is zero, total utility is at its maximum because the consumer has consumed the optimal amount of the good where any additional unit would not add to their satisfaction. Therefore, the total utility curve reaches its peak, indicating maximum satisfaction.

If Marginal Utility Is Zero, Total Utility Is