Question

What is MU when TU is maximum?​

Answer 1

Answer:

When TU reaches its maximum, MU becomes zero. TU stops rising at this stage. This point is known as a point of satiety.

Answer 2

Answer:

When marginal utility is zero, then total utility is maximum because any further consumption of that commodity will lead to negative marginal utility and therefore total utility will tend to decrease. Therefore, it is called the saturation point as after this total utility falls.

Explanation:

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