When Total Utility Is at a Maximum, Marginal Utility Is

question 224

Multiple Choice

When total utility is at a maximum, marginal utility is:

• A) rising.
• B) at its average value.
• C) at a maximum.
• D) zero.

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Definitions:

Close Substitutes

Goods or services that can easily replace each other in consumption, affecting consumer choice and market competition.

Quantity Demanded

The aggregate quantity of a product or service that buyers are prepared to buy at a given price point.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level and at a given time.

Quantity Supplied

Quantity supplied refers to the amount of a good or service that producers are willing and able to sell at a given price over a specific period.