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Unilorin Post-UTME Economics 2024 (Model questions) Question 3

Question 3

Theory of Consumer Behaviour

When total utility reaches the maximum, marginal utility will be ________

  1. A.falling
  2. B.zero
  3. C.one
  4. D.rising
Show the answer and explanation

Answer: B (zero)

Explanation

Marginal utility is the extra satisfaction from one more unit. At the top of the total utility curve an extra unit adds nothing, so MU = 0.