What is the saturation point ........

Introductory Microeconomics Consumer Behavious and Demand

Download Solution PDF

What is the saturation point?

When TU is minimum and MU is zero

When TU is maximum and MU is 1

When TU is minimum and MU is 1

When TU is maximum and MU is zero

Explanation:

Option (4) is correct.
Explanation: MU curve is the slope of TU curve. Since the slope of TU curve at that point is zero, therefore, MU is zero and that point is known as the saturation point. Units of the
good are consumed till the saturation point.

Report error

Submit Error