Marginal utility and total utility are important concepts in economics. Marginal utility refers to the additional satisfaction or benefit that a consumer derives from consuming an additional unit of a good or service, while total utility refers to the overall satisfaction or benefit that a consumer derives from consuming a certain quantity of a good or service.

When marginal utility is zero, it means that the consumer is no longer gaining any additional satisfaction or benefit from consuming additional units of the good or service. This point is known as the point of maximum total utility, or the point of consumer equilibrium.

Explanation:

There are three possible scenarios for marginal utility:

1. Positive Marginal Utility: When the marginal utility of a good or service is positive, it means that the consumer is gaining additional satisfaction or benefit from consuming each additional unit. In this case, the total utility is increasing.

2. Zero Marginal Utility: When the marginal utility of a good or service is zero, it means that the consumer is no longer gaining any additional satisfaction or benefit from consuming additional units. In this case, the total utility is at its maximum.

3. Negative Marginal Utility: When the marginal utility of a good or service is negative, it means that the consumer is actually experiencing a decrease in satisfaction or benefit from consuming each additional unit. In this case, the total utility is decreasing.

Thus, when marginal utility is zero, the total utility is at its maximum. This is because the consumer has reached the point of consumer equilibrium, where they are consuming the optimal quantity of the good or service to maximize their overall satisfaction or benefit.

Conclusion:

In conclusion, the concept of marginal utility is important for understanding consumer behavior and decision-making. When marginal utility is zero, it indicates that the consumer has reached the point of maximum total utility or consumer equilibrium. This is an important concept in economics and has numerous practical applications in marketing, pricing, and product development.

Answer is C)Maximum, because when the marginal utility is zero, the total utility will be maximum, and that is called point of satiety.The desire of the consumer to consume the good has been completely satisfied and the consumer will not be pleased with further consumption.