Answer to Question #64010 in Economics for Faisal

Question #64010
Marginal utility is zero when total utility is

a. Is deceasing
b. Is increasing
c. Equal to marginal utility
Please tell which is right answer and why
1
Expert's answer
2016-12-16T11:38:11-0500
b. Is increasing
This corresponds to the law of diminishing marginal utility. It says ‘as more and more units of a good are consumed, marginal utility (level of satisfaction derived from each successive unit) goes on falling because desire for that commodity tend to fall.

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