Q245
When total utility becomes maximum, then marginal utility will be
A.
Minimum
B.
Average
C.
Zero
AnswerD.
Negative
Answer: Option C
Solution
Answer: Option C
Solution:
When total utility becomes maximum, then marginal utility will be Zero. It is based in the law of diminishing marginal utility which says 'as more and more units of a good are consumed, MU i.e level of satisfaction derived from each successive unit goes on falling because desire for that commodity tend to fall.