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Answer to Question #64012 in Economics for Faisal
Question #64012
Marginal utility is zero when total utility is
a. Is deceasing
b. Is increasing
c. Equal to marginal utility
d. At its maximum
e. Equal to zero
Kindly tell the right answer of question and why
a. Is deceasing
b. Is increasing
c. Equal to marginal utility
d. At its maximum
e. Equal to zero
Kindly tell the right answer of question and why
Expert's answer
d. At its maximum
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.
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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