[Solved] If total utility is maximum at a point, then marginal utility is -

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Q.	If total utility is maximum at a point, then marginal utility is -
A.	positive
B.	zero
C.	negative
D.	positive but decreasing
Answer» B. zero
Explanation: Marginal utility of a good or service is the gain (or loss) from an increase (or decrease) in the consumption of that good orservice. As the rate of commodity acquisition increases, marginal utility decreases. If commodity consumption continues to rise, marginal utility at some point falls to zero, reaching maximum total utility. Further increase in consumption of units of commodities causes marginal utility to become negative; this signifies dissatisfaction.

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