Question

​If, when you consume another unit of a​ good, your marginal utility is​ zero, then A. you have not yet reached the point of diminishing marginal utility. B. you have maximized your total utility from consuming the good. C. you should consume less of this good. D. you want more of the good.

Answer 1

B. you have maximized your total utility from consuming the good.

Step-by-step explanation:

Utility is the satisfaction derived from the consumption of a good or service. Marginal utility is the joy and satisfaction from the consumption of an extra unit of a product or service. A positive marginal utility implies that the consumption of an additional unit adds more satisfaction to the consumer.

When the marginal utility is zero, it means that no satisfaction was derived from the extra unit. The consumer has already achieved the maximum benefit from consuming that product. Further consumption will not add value to the consumer.