Question

Marginal Utility (MU) in terms of money is equal to ______.

Options

• `"Marginal Utility in utils"/"Marginal Utility of one rupee"`

• `"Marginal Utility of one rupee"/"Marginal Utility in utils"`

• `"Marginal Utility in utils"/"Price of the Commodity"`

• None of these

Answer 1

Marginal Utility (MU) in terms of money is equal to `\underline("Marginal Utility in utils"/"Marginal Utility of one rupee")`.

Explanation:

To express marginal utility in money, divide utility in utils by the marginal utility of one rupee. The other ratios do not convert utils into monetary value as defined in the utility approach.