Maximum utility is achieved when
A)Total revenue is the greatest.
B)The price elasticity of demand is 1.0.
C)Marginal utility is zero.
D)Total utility equals marginal utility.

Question

Quizplus · Accepted Answer

Maximum utility is achieved when the marginal utility, which is the additional satisfaction or utility gained from consuming an additional unit of a good or service, becomes zero. This indicates that the consumer has reached a point where consuming more of the good or service does not increase their overall satisfaction, thus maximizing their utility.

Maximum Utility Is Achieved When