When can we say that the consumer's satisfaction from a commodity is maximum in terms of marginal utility? |
When MU is negative When MU is positive When MU is zero MU does not indicate consumer's satisfaction |
When MU is zero |
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.
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