When can we say that the consumer's satisfaction from a commodity is maximum in terms of marginal utility?

When MU is zero

The correct ansqwer is Option 3: When MU is zero

Consumer's satisfaction is maximum when his total utility is at peak. And total utility is maximum when there is no increase in the marginal utility received after consumption of the commodity.

Here’s why:

• When MU is positive: The consumer still derives additional satisfaction from consuming more of the commodity. Thus, satisfaction is not yet maximized.
• When MU is negative: The consumer derives less satisfaction or disutility from consuming additional units, indicating overconsumption.
• When MU is zero: The consumer has reached the point where consuming additional units does not change their level of satisfaction. This is where satisfaction from the commodity is maximized in terms of marginal utility.