Economy, asked by raitanya75, 6 months ago

why total utility is maximum when marginal utility is zero​

Answers

Answered by Sayedahk0308
2

Answer:

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.

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