Question

The assumption of “Constant marginal utility of money” means that importance of money to consumer is ______.

विकल्प

• Increasing

• Decreasing

• Same

• None of these

Answer 1

The assumption of “Constant marginal utility of money” means that importance of money to consumer is same.

Explanation:

Constant marginal utility of money means each additional rupee is assumed to have the same importance to the consumer. Thus, its marginal utility does not rise or fall.