Home » mcq » Economics » At a point of satiety for a commodity, the marginal utility is
Negative
Positive
Zero
Highly positive
Answer is Right!
Answer is Wrong!
The correct answer is C. Zero.
Marginal utility is the additional satisfaction or benefit that a consumer gains from consuming one more unit of a good or service. At a point of satiety, the consumer has consumed so much of the good or service that they no longer derive any additional
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satisfaction from consuming more. In other words, the marginal utility of the good or service is zero.
Option A is incorrect because marginal utility cannot be negative. This is because consumers will always choose to consume goods and services that provide them with positive utility.
Option B is incorrect because marginal utility can be positive at points before satiety. This is because consumers will always choose to consume more of a good or service as long as the marginal utility is positive.
Option D is incorrect because marginal utility cannot be highly positive at points of satiety. This is because the marginal utility of a good or service will always decline as the consumer consumes more of it.