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Utility & Consumer's Equilibrium · Question 14 of 73

Question 14

MediumOriginal question

Read the two statements and choose the correct option.

I. When total utility is at its maximum, marginal utility is zero.

II. Marginal utility can never be negative.

Options for question 14

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. I is true: TU stops rising exactly when the extra unit adds nothing.

  2. II is false: beyond saturation, an extra unit lowers TU, so MU is negative.

Concept
TU, MU and saturation
Typical time
70 s
Your time
—
The rule this testsTotal and marginal utility
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Ten questions from Utility & Consumer's Equilibrium, at your own pace.

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