Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

When can we say that the consumer's satisfaction from a commodity is maximum in terms of marginal utility?

Options:

When MU is negative

When MU is positive

When MU is zero

MU does not indicate consumer's satisfaction

Correct Answer:

When MU is zero

Explanation:

Consumer's satisfaction is maximum when his total utility is at peak. And total utility is maximum when there is no increase in the marginal utility received after consumption of the commodity, So, we can say when MU is 0, TU is maximum and consumer is at peak in terms of utility.