When Marginal Utility is zero, Total Utility is
A
Minimum
B
Maximum
C
Law of return
D
None of the above
Correct Answer: Maximum
When Marginal Utility is zero, Total Utility is maximum. It is based in the law of diminishing marginal utility which says 'as more and more units of a good are consumed, MU i.e level of satisfaction derived from each successive unit goes on falling because desire for that commodity tend to fall.