5. (Choose the correct option) The point after which a rational consumer should stop his consumption a) Point of dissatisfaction b) Point of utility c) Point of satiety d) Point of maximity * O a and d O a, b and d O only c O a and b
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the question s answer is c
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POINT OF SATIETY
The point after which a rational consumer should stop his consumption is called point of satiety.
EXPLANATION:
*The point of satiety is defined as the point at which any activity's marginal utility is zero. The marginal utility becomes negative from this point forward. In other words, the point of satiety is the moment at which total utility has been maximized. From here on forth, the total utility decreases. Every more effort yields poor results.
*There is an inverse link between MU and the stock of commodity eaten; as the stock of commodity consumed increases, MU decreases
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