When Total Utility Is at a Maximum

question 421

Multiple Choice

When total utility is at a maximum

• A) marginal utility is at a minimum.
• B) marginal utility is negative.
• C) marginal utility is zero.
• D) marginal utility is equal to total utility.

---

Definitions:

Industry Expands

The growth phase of an industry characterized by an increase in output, number of producers, or production capacity.

Accompanying Graph

A visual representation used alongside data or concepts to illustrate trends, patterns, or relationships in a clear and effective manner.

Decreasing-Cost Industry

An industry in which costs per unit decline as the industry scales up production, often due to economies of scale.

Average Cost

The total cost of production divided by the quantity of the product produced, indicating the cost per unit of output.