1. Marginal utility is zero
  2. Marginal utility is at its highest point
  3. Marginal utility is equal to average
  4. Average utility is maximum
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1 Answers

Answer: Option 1

Total utility is maximum when Marginal utility is zero. 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.

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