Question

When zero units have been consumed, what value TU and MU takes?

• A. TU is zero and MU is positive.
• B. TU is zero and MU is falling.
• C. TU is zero and MU is maximum.
• D. TU is none and MU is above.

Answer 1

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.