### State with reason whether you agree or disagree: 2. When MU is zero, TU diminishes.

State with reason whether you agree or disagree:
2. When MU is zero, TU diminishes.

ANSWER:
When MU is zero, TU diminishes. - Disagree
Explanation:
The above statement is incorrect as, when Marginal Utility (MU) is zero, Total Utility (TU) attains its maximum point (i.e. the saturation point). On the other hand, when MU becomes negative, TU diminishes.