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Fill in the Blank with Appropriate Alternatives Given Below: When Mu is ______________ Tu Decreases. - Economics

MCQ
Fill in the Blanks

Fill in the blank with appropriate alternatives given below:

When MU is ______________ TU decreases.

Options

  • positive

  • negative

  • zero

  • high

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Solution

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.  

Concept: Total Utility and Marginal Utility
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APPEARS IN

Micheal Vaz Economics HSC 12th Standard Maharashtra State Board
Chapter 2 Consumer's Behavior
Exercise | Q 1.4 | Page 16
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