When zero units have been consumed, what value TU and MU takes?
A
TU is zero and MU is positive.
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B
TU is zero and MU is falling.
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C
TU is zero and MU is maximum.
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D
TU is none and MU is above.
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Solution
The correct option is C TU is zero and MU is maximum. When no units of a commodity is consumed then marginal utility is maximum after which it diminishes on consumption and total utility is zero as there is no consumption of any commodity.