Question

When total utility is maximum, then marginal utility is ______.

Options

• Positive

• Negative

• Zero

• One

Answer 1

When total utility is maximum, then marginal utility is zero.

Explanation:

• Total utility is the overall happiness a person feels from using a certain amount of things or services.
• On the other hand, marginal utility is the extra satisfaction you get from using one more unit of a good or service.
• When overall utility is at its highest point, using one more unit doesn't make you happier, so marginal utility equals zero.