Question

Explain what happens to total utility and marginal utility at the satiation point?

Answer 1

The concept of utility is subjective factors and varies one person to another person.The total utility refers to total satisfaction received from the consuming a given total quantity of goods and service.while the marginal utility is the satisfaction gained from the additional units of the commodity

COMMODITY	TU	MU
1	20	20
2	37	17
3	52	15
4	64	12
5	74	10
6	82	8
7	88	6
8	88	0
9	80	-8
10	70	-10

.The above table showing the relationship between TU and MU when Toal utility is highest that is 88 then MU is O it indicating the saturation point of consumption and future consuming additional unit MU becomes negative.