If marginal utility is zero ?
Correct answer: D. Total utility is maximized
- A. Total utility is zero
- B. An additional unit of consumption will decrease total utility
- C. An additional unit of consumption will increase total utility
- D. Total utility is maximized
Explanation
Marginal utility is the addition to total utility from one more unit; when it reaches zero, total utility has reached its maximum. It is not zero itself, and the next unit would not increase it.
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