ExamVeda
Login
Home
This question belongs to Commerce Economics
Economics
?

Total utility is maximum when

Answer & Solution
Correct Answer: Option A
Total utility is maximum when Marginal utility is 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.
Examveda
Question posted by Examveda
Community

Join the Discussion

No comments yet Be the first to discuss this question.