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Marginal Utility

The point at ...

Question

The point at which the total utility derived by a consumer is the maximum called ________.

A

climax

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B

point of saturation

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C

top hill

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D

maxima point

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Solution

The correct option is B point of saturation
Point of saturation is referred to that point when total utility is maximum and marginal utility is zero. Beyond this point the total utility starts decreasing and marginal utility starts getting negative.

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