When the total utility is maximum marginal utility is positive?

When total utility is maximum, marginal utility is zero. When total utility is decreasing, marginal utility is negative. When total utility is increasing, marginal utility is positive. When total utility is maximum, marginal and average utility is equal to each other.

When the total utility curve reaches its maximum level marginal utility is?

zero
Along the utility curve, when total utility reaches its maximum, marginal utility is zero.

When marginal utility is maximum?

When total utility is maximum marginal utility is zero.

When marginal utility is Dash total utility is maximum?

Total utility is maximum when marginal utility starts declining.

What happens to total utility when marginal utility is zero?

When Marginal Utility is zero, Total Utility is maximum. It is based in the law of diminishing marginal utility which says ‘as more and more units of a good are consumed, MU i.e level of satisfaction derived from each successive unit goes on falling because desire for that commodity tend to fall.

When the average utility is maximum the marginal utility is average utility?

The point at which the average utility is maximum, the marginal utility curve intersects the average utility curve at this point, thus, both are equal.

Why total utility is maximum when marginal utility is zero?

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. Therefore, it is called the saturation point as after this total utility will fall due to negative marginal utility.

When does total utility increase, marginal utility is?

1. TU increases with an increase in consumption of a commodity as long as MU is positive. In this phase, TU increases but a diminishing rate as MU from each successive unit tends to diminish. 2. When TU reaches its maximum, MU becomes zero. TU stops rising at this stage. This point is known as point of satiety. 3.

When is the total utility of a product is maximum?

Total utility will be maximum when marginal utility to price of respective products are equal.

When does the utility of a commodity increase?

TU increases with an increase in consumption of a commodity as long as MU is positive. In this phase, TU increases but a diminishing rate as MU from each successive unit tends to diminish. 2. When TU reaches its maximum, MU becomes zero. TU stops rising at this stage. This point is known as point of satiety.

When does Tu reach its maximum, mu becomes negative?

When TU reaches its maximum, MU becomes zero. TU stops rising at this stage. This point is known as point of satiety. 3. When consumption is increased beyond the point of satiety, TU starts falling as MU becomes negative.