FIGURE 6-1
-Refer to Figure 6-1.Total utility is at its maximum when marginal utility is
A)equal to zero.
B)negative.
C)positive.
D)equal to total utility.
E)at the maximum.

Question

FIGURE 6-1
-Refer to Figure 6-1.Total utility is at its maximum when marginal utility is
A)equal to zero. 
B)negative. 
C)positive. 
D)equal to total utility. 
E)at the maximum.

Quizplus · Accepted Answer

Total utility is at its maximum when marginal utility is equal to zero. This is because at this point, any additional unit consumed would not add to the total utility, but rather decrease it. Therefore, to maximize total utility, consumers should consume up to the point where the marginal utility is equal to zero.

FIGURE 6-1 -Refer to Figure 6-1.Total Utility Is at Its Maximum When