Economics · Consumer Behaviour
Which of the following statements correctly describes the relationship between Total Utility (TU) and Marginal Utility (MU)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Total utility decreases when marginal utility is positive.
- 2When marginal utility is zero, total utility is maximum.✓
- 3Marginal utility increases when total utility increases at a diminishing rate.
- 4When total utility is maximum, marginal utility is negative.
Correct answer
When marginal utility is zero, total utility is maximum.
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