Question

Question 32 2 pts Refer to the following figure to answer the following questions: Marginal Utility 0 1 2 3 4 5 6 7 8 9 Number of Cupcakes Total utility is highest at the cupcake. eighth Seventh sixth first ninth

Answer 1

Option B) seventh

When the marginal utility is zero, the total utility reaches the maximum point.

The total utlity is the total satisfaction a person derives when consuming certain units of a commodity. The marginal utility is the additional satisfaction the consumer derives when consuming one additional unit of that commodity.

At first, the total utility begins to increases when the consumer consumes additional units of that commodity. But after a certain point, the total utility reaches a maximum point and then begins to decrease. The point where the total utility reaches a maximum is where the marginal utility is zero and that is the place where the consumer gets the maximum satisfaction.