Homework Answers
Total utility is the total amount of satisfaction measured in utils that a person gets by consuming a particular amount of a good. Marginal utility is the addition to the total amount of satisfaction that results from the Consumption of one more unit of the good.
Analysing the relationship between total utility and the marginal utility, one can easily see that if the total utility is at a maximum, then marginal utility is zero. After that point of total Utility maximum, the marginal utility is negative and total utility decreases.
So, it is true that if total utility is at maximum, then marginal utility is zero.
Hence, first option is correct.
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Question 13 (1 point) In consumer equilibrium, which of the following is true? The marginal utility from the consumption of each good is the same. The marginal utility from the consumption of each good is zero. The marginal utility from the consumption of the last dollar's worth of each good is the same. The total utility from the consumption of each good is the same.
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