Define utility. Explain the relationship between TU and MU curves Or Define utility Explain the law of DMU Or Explain the law of DMU with the help of an example. Or Explain the law of diminishing marginal utility using TV schedule.

Define utility. Explain the relationship between TU and MU curves Or D

1.	Define utility. Explain the relationship between TU and MU curves Or Define utility Explain the law of DMU Or Explain the law of DMU with the help of an example. Or Explain the law of diminishing marginal utility using TV schedule.
Answer» Solution :Utility is a term used by ECONOMISTS to describe the measurement of "useful-ness" that a CONSUMER obtains from any GOOD. Mu goes on diminishing as the consumer consumes more and more units of a commodity. There is an INVERSE relationship between MU and stock of the commodity i.e. as the stock of the commodity consumed increases, MU goes on diminishing. 3. When MU is Zero, TU is the maximum and it is the point of maximum satisfaction.