At the point of satiety, marginal utility is

Solution (By Examveda Team)

At the point of satiety, marginal utility is zero.

Marginal utility refers to the additional satisfaction or benefit gained from consuming one more unit of a good or service. The point of satiety is the stage where a consumer has consumed enough of a product, and any additional consumption does not add any further satisfaction or utility. Therefore, at this point, the marginal utility becomes zero.

Option B: Positive
This option is incorrect because if marginal utility were positive, it would imply that additional consumption still provides some level of increased satisfaction, which is not the case at the point of satiety.

Option C: Maximum
This option is incorrect because marginal utility is not at its maximum at the point of satiety. Marginal utility reaches its maximum before reaching the point of satiety, when each additional unit consumed provides decreasing satisfaction until it reaches zero.

Option D: Negative
This option is incorrect because negative marginal utility would imply that additional consumption decreases overall satisfaction, which occurs after the point of satiety, not at it.

Example of correct usage:
When a person has had enough water to drink, the marginal utility of an additional glass of water becomes zero, indicating they have reached the point of satiety. Any further consumption would not increase their satisfaction.

Understanding marginal utility helps in analyzing consumer behavior and preferences, particularly in determining the optimal consumption level of goods and services.