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WAEC Economics 2010 Question 11

Question 11

Theory of Consumer Behaviour

At the highest level of total utility, marginal utility is

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

Answer: D (zero.)

Explanation

Total utility stops rising when the extra unit adds nothing, i.e. when marginal utility is zero.