Question

Match the following definitions with the correct term:

• A. When MU = 0
• B. When MU > 0
• C. When MU < 0
• D. When TU = 0

Answer 1

(i) When TU is maximum, MU is zero.

(ii) When TU is falling, MU is negative.

(iii) When TU is rising, MU is positive.

(iv) Zero utility implies that TU is zero.