143
Question
At point of satiety, marginal utility is _____.
At point of satiety, marginal utility is _____.
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Solution
The correct option is A Zero
In economics, the point of satiety is defined as the point when the
marginal utility of any activity is zero. From this point on, the
marginal utility actually turns negative. Expressed differently, the
point of satiety reflects that point when the total utility has been
maximized. From here on, the total utility actually reduces. Every extra
effort leads to negative returns.
In economics, the point of satiety is defined as the point when the marginal utility of any activity is zero. From this point on, the marginal utility actually turns negative. Expressed differently, the point of satiety reflects that point when the total utility has been maximized. From here on, the total utility actually reduces. Every extra effort leads to negative returns.
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