Asked by Judie Alfaro on Jun 28, 2024
Verified
Assuming well-defined indifference curves, when marginal utility is zero, total utility is at a maximum.
Indifference Curves
Indifference curves are graphical representations used in microeconomics to show combinations of two goods among which a consumer is indifferent, reflecting their preferences and consumption choices.
Marginal Utility
The change in satisfaction or utility that a person receives from consuming an additional unit of a good or service.
- Identify the differences between total utility and marginal utility.
Verified Answer
DP
Diana PlangJun 28, 2024
Final Answer :
True
Explanation :
When marginal utility is zero, it means that consuming an additional unit of a good or service provides no additional satisfaction, indicating that total utility has reached its maximum point.
Learning Objectives
- Identify the differences between total utility and marginal utility.
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