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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