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JAMB Economics 2001 Question 7

Question 7

Theory of Consumer Behaviour

The diagram above shows the total utility curve. At the point M, marginal utility

Diagram for this question
  1. A.increases
  2. B.is unity
  3. C.diminishes
  4. D.is zero
Show the answer and explanation

Answer: D (is zero)

Explanation

Use the diagram to answer the question. Point M is the top of the total utility curve, where total utility stops rising, so marginal utility there is zero.