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When total utility is maximum, marginal utility becomes :
Unity
Negative
Zero
Positive
- Option:1, Unity: Marginal utility is not at unity when total utility reaches its peak. Unity refers to when marginal utility equals one, which usually applies in a different context.
- Option:2, Negative: When marginal utility is negative, it means additional consumption decreases total utility. This occurs when past the point of maximum total utility.
- Option:3, Zero: At the point where total utility is maximized, consuming additional units does not increase utility further. Hence, the marginal utility becomes zero. This is the correct answer.
- Option:4, Positive: Before reaching maximum total utility, adding more consumption would still increase total utility, keeping marginal utility positive.
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