Question

In the following Question, read the following statement: Assertion (A) and Reason (R). Choose the correct alternative among those given below:

Assertion (A): Marginal Utility can never be negative. 

Reason (R): Total Utility is maximum when Marginal Utility is zero.

विकल्प

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is True but Reason (R) is False.

• Assertion (A) is False but Reason (R) is True.

Answer 1

Assertion (A) is False but Reason (R) is True.

Explanation:

The assertion is false because marginal utility can become negative when an additional unit reduces total utility; this is called disutility. The reason is true: total utility is maximum at the point of satiety, where marginal utility is zero. Therefore, (d) is correct.