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Q.

When the Marginal Utility becomes zero then the total utility of a consumer _______ .  

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a

Maximum

b

Increases

c

Decreases

d

  None of the above

answer is A.

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Detailed Solution

When marginal utility is zero it means the consumer would not be getting any more satisfaction from consuming more of the product. But, this does not total utility is zero. The total utility will be at its highest when the marginal utility is zero.

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When the Marginal Utility becomes zero then the total utility of a consumer _______ .