Fill in the blank with appropriate alternatives given below: When MU

1.	Fill in the blank with appropriate alternatives given below: When MU is ______________ TU decreases.Optionspositivenegativezerohigh
Answer» When MU is negative, TU decreases. Explanation: Total Utility TU depends upon the Marginal Utility MU . Marginal utility depicts the addition to total utility when an additional unit of the commodity is consumed. A negative marginal utlity suggests that additional to total utility is negative. Thus, total utility is falling.

Fill in the blank with appropriate alternatives given below: When MU is ______________ TU decreases.Optionspositivenegativezerohigh

Answer»

When MU is negative, TU decreases.

Explanation: Total Utility TU depends upon the Marginal Utility MU . Marginal utility depicts the addition to total utility when an additional unit of the commodity is consumed. A negative marginal utlity suggests that additional to total utility is negative. Thus, total utility is falling.

Discussion

No Comment Found

Related InterviewSolutions

State the following statement is True or False: MU and TU are equal at the initial stage.OptionsTrueFalse
State the following statement is True or False: Negative MU denotes more satisfaction.OptionsTruefalse
Distinguish between: Utility and satisfaction
Define or explain the following concept: Marginal utility
Define or explain the following concept: Knowledge utility
Define or explain the following concept: Possession utility
Write short note on:Form utility
Give reason or explain: Utility is a subjective concept.
State the following statement is True or False: Utility is the basis of demand.OptionsTrueFalse
Give reason or explain: Utility and happiness are different.

Fill in the blank with appropriate alternatives given below: When MU is ______________ TU decreases.Optionspositivenegativezerohigh

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment