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At the point of satiation in the consumption of a good, the marginal utility of the last unit consumed is:
Anegative
Bmaximum
Crising
Dzero
Answer & Solution
Correct answer: D. zero
1. At the satiation point the consumer gets no extra satisfaction from an additional unit.
2. Therefore marginal utility equals zero, and at this point total utility is at its maximum.
3. Negative MU occurs only beyond satiation, and MU is falling not rising, so those options are wrong.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 2 Unit II "Theory of Consumer Behaviour", p.5_
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