Question 18
MediumOriginal questionAssertion (A): When marginal utility is zero, total utility is zero.
Reason (R): Total utility is at its maximum when marginal utility is zero.
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
A is false: at zero MU, total utility is at its highest, not zero (for example, 30 utils for a consumer whose MU runs 10, 8, 6, 4, 2, 0).
R is true.
- Concept
- Zero MU does not mean zero TU
- Typical timeTypical
- 70 s
- Your timeYours
- —
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