Total utility
A) can never be negative
B) is maximized when marginal utility is maximized
C) always continues to increase as more of the good is consumed
D) is maximized when marginal utility is zero
E) is minimized when marginal utility is zero

Question

Quizplus · Accepted Answer

Total utility is maximized when marginal utility, which is the additional satisfaction gained from consuming one more unit of a good, is zero. This is because at the point where marginal utility is zero, consuming more of the good does not increase total satisfaction, indicating the peak of total utility.

Total Utility