Which one of the following statements is not correct? When total utility is maxi

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Question
Which one of the following statements is not correct?
Options
A. When total utility is maximum, marginal utility is zero
B. When total utility is decreasing, marginal utility is negative
C. When total utility is increasing, marginal utility is positive
D. When total utility is maximum,marginal and average utility are equal to each other.

Correct Answer

When total utility is maximum,marginal and average utility are equal to each other.

Explanation

Total utility -It is total psychological satisfaction which a consumer derives from the consumption of a commodity is known as total utility

Marginal utility -It is anaddition made in total utility by consuming and additional unit of a commodity is known as marginal utility.

?When marginal utility is positive,total utility increases

?When marginal utility is zero,total utility is at maximum

?When marginal utility is negative,total utility decreases

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