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Question
MU of the commodity becomes negative when TU of a commodity is ______.
Options
rising
constant
falling
zero
MCQ
Fill in the Blanks
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Solution
MU of the commodity becomes negative when TU of a commodity is falling.
Explanation:
- MU (Marginal Utility) becomes negative when TU (Total Utility) starts falling.
- This means the consumer gets disutility from consuming additional units.
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RELATED QUESTIONS
Choose the correct option:
Statement indicating consumer equilibrium:
a) MU is greater than price
b) MU is equal to price
c) MU is less than price
d) Price is less than one
Unit at which MU (Marginal Utility) becomes equal with market price is ______.
Study the following table, figure, passage and answer the question given below it.
| Units | MU OF X | MU in terms of money 1 unit = RS.10 | Market price per unit = RS.50 | Comparison between MU and Price |
| 1 | 10 | 100 | 50 | MU > PRICE |
| 2 |
____ |
80 | 50 | MU > PRICE |
| 3 | 7 | _____ | 50 | MU > PRICE |
| 4 | 5 | 50 | 50 | _____ |
| 5 | 3 | 30 | 50 | MU < PRICE |
| 6 | 1 | 10 | 50 | _____ |
- Complete the table (2m)
- Identify any two Intra Marginal Units (1m)
- Identify any two Extra Marginal Units (1m)
Complete the correlation:
Intra marginal unit : MU > Price : : ______ : MU < Price.
