Asked by Carina Campos on Jun 04, 2024
Verified
When total utility reaches a maximum, then marginal utility is
A) increasing.
B) decreasing.
C) at a minimum.
D) equal to zero.
Marginal Utility
Additional enjoyment or value experienced from consuming an extra unit of a good or service.
- Achieve an understanding of marginal utility and deploy it in practical scenarios.
Verified Answer
ZK
Zybrea KnightJun 06, 2024
Final Answer :
D
Explanation :
When total utility reaches a maximum, marginal utility is equal to zero. This is because marginal utility measures the change in total utility from consuming an additional unit of a good or service, and at the maximum total utility, consuming an additional unit does not increase total utility any further.
Learning Objectives
- Achieve an understanding of marginal utility and deploy it in practical scenarios.
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