Question

What is the saturation point?

Options

• When TU is minimum and MU is zero

• When TU is maximum and MU is 1

• When TU is minimum and MU is 1

• When TU is maximum and MU is zero

Answer 1

When TU is maximum and MU is zero

Explanation:

The slope of the MU curve is the same as the slope of the TU curve. Because the slope of the TU curve at that point is zero, MU is also zero, and that point is referred to be the saturation point. The good is eaten in units until it reaches saturation.