English

State whether true or false: Any consumption beyond the point of satiety leads to disutility.

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Question

State whether true or false:

Any consumption beyond the point of satiety leads to disutility.

True or False
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Solution

This statement is true.

Reason:

  • At the point of satiety, marginal utility is zero and total utility is at its maximum.
  • Consumption beyond this point makes marginal utility negative.
  • Negative marginal utility is called disutility.
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Chapter 2: Consumer's Equilibrium - OBJECTIVE QUESTIONS [Page 2.43]

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Sandeep Garg Introductory Microeconomics [English] Class 11
Chapter 2 Consumer's Equilibrium
OBJECTIVE QUESTIONS | Q 2. | Page 2.43
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