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Question
When MU is zero, TU is _________.
When MU is zero, TU is _________.
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Solution
The correct option is D maximum
When marginal utility is zero, then total utility is maximum because any further consumption of that commodity will lead to negative marginal utility and therefore total utility will tend to decrease.
When marginal utility is zero, then total utility is maximum because any further consumption of that commodity will lead to negative marginal utility and therefore total utility will tend to decrease.
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