ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Total Utility is maximum only when marginal utility is zero, because at that point any additional unit consumed will lead to a decrease in overall satisfaction.

Detailed explanation-2: -Zero marginal utility is what happens when consuming more of an item brings no extra measure of satisfaction. For example, you might feel fairly full after two slices of cake and wouldn’t really feel any better after having a third slice. In this case, your marginal utility from eating cake is zero.

Detailed explanation-3: -Total Utility Maximization The greater the consumer’s total utility, the higher the measure of satisfaction acquired. Total utility is used to determine a consumer’s decision based on utility maximization in the economic setting.

Detailed explanation-4: -When marginal utility becomes negative the addition to total utility will be negative, thus, leading to diminishing total utility.

Detailed explanation-5: -Total utility operates hand in hand with marginal utility, which measures the additional satisfaction received from the consumption of a good or service. As long as marginal utility is positive, total utility will increase. Once marginal utility is negative, then total utility will decrease.