When TU is maximum, what happens to MU?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → MU is zero
When Total Utility (TU) is at its maximum, Marginal Utility (MU) is zero. This is because MU represents the change in TU with each additional unit consumed. When TU reaches its peak, any additional unit consumed does not increase the total utility further, hence MU is zero at that point.