Question

Which of the following statement is false?

विकल्प

• When MU is negative, TU will be increasing.

• When MU is positive, TU will be decreasing.

• When MU is zero, TU is maximum.

• None of these

Answer 1

When MU is zero, TU is maximum.

Explanation:

Relationship between Total Utility and Marginal Utility:

(i) When the MU is positive, the TU rises.

(ii) TU is greatest when MU is zero.

(iii) When MU is negative, the value of TU decreases.