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Total Revenue and Marginal Revenue

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Question

What happens when marginal utility is zero?

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Solution

When the marginal utility is zero, the Total utility is at its maximum value.

Also read:

Difference Between Total Utility and Marginal Utility

Consumer Equilibrium Utility Analysis

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Similar questions

Q. Fill in the blanks with appropriate alternatives given in the bracket:

1. _________________ refers to want satisfying power of a commodity. (Usefulness/ Utility/ Satisfaction/ Happieness)

2. Marginal utility diminishes, as consumption of commodity ________. (increases/ decreases/ remains constant/ become zero)

3. _________________ utility is the utility derived from the last unit of the commodity consumed. (Average/ Total/ Marginal/ Zero)

4. When MU is ______________ TU decreases. (positive/ negative/ zero/ high)

Q. When the marginal utility is the maximum, the total utility will be zero.

Q. When marginal utility is zero, the total utility is _______.

Q. According to the law of diminishing marginal utility, at what rate does total utility increase and what happens to marginal utility?

Q. When marginal utility (MU) is zero, total utility (TU) diminishes.

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