Question

Marginal utility of a particular commodity at the point of saturation is ________.

• A. zero
• B. unity
• C. greater than unity
• D. less than unity

Answer 1

The correct option is A zero

When marginal utility is zero, then total utility is maximum because any further consumption of that commodity will lead to negative marginal utility and therefore total utility will tend to decrease. Therefore, it is called the saturation point as after this total utility will fall due to negative marginal utility.