1.

State with reason whether you agree or disagree: When MU is zero, TU diminishes.

Answer»

When MU is zero, TU diminishes. - Disagree

Explanation: The above statement is incorrect as, when Marginal Utility MU is zero, Total Utility TU attains its maximum point i.e.thesaturationpoint . On the other hand, when MU becomes negative, TU diminishes



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