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Question 29 of 41

Q.When marginal utility reaches zero, the total utility will be :

(a) Zero
(b) Minimum
(c) Negative
(d) Maximum
Puducherry TnboardTamil Nadu HSC First Year (DGE) Commerce Board 2024MCQ· 1mImportance★★★★★
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The correct option is (d) Maximum: TU is highest when MU = 0.

Marginal utility (MU) is the addition to total utility (TU) from consuming one more unit. As long as MU is positive, TU keeps increasing; the point where MU falls to zero is the saturation point at which TU stops rising and is therefore at its maximum. If the consumer takes still more units, MU becomes negative and TU begins to fall.

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