Refer to the accompanying figure to answer the questions.
-Total utility is maximized at the:
A) first cupcake.
B) eighth cupcake.
C) ninth cupcake.
D) seventh cupcake.
E) sixth cupcake.

Question

Refer to the accompanying figure to answer the questions. 
-Total utility is maximized at the:
A) first cupcake. 
B) eighth cupcake. 
C) ninth cupcake. 
D) seventh cupcake. 
E) sixth cupcake.

Quizplus · Accepted Answer

Total utility is maximized at the point where consuming an additional unit does not increase overall satisfaction, which is typically before diminishing returns set in significantly. This is often at the seventh unit in such scenarios.

Refer to the Accompanying Figure to Answer the Questions