Maharashtra State BoardHSC Commerce 12th Board Exam
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State the Following Statement is True Or False: Mu and Tu Are Equal at the Initial Stage. - Economics

MCQ
True or False

State the following statement is True or False:

MU and TU are equal at the initial stage.

Options

  • True

  • False

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Solution

MU and TU are equal at the initial stage. -True

Explanation: Total utility TU refers to the aggregate utility, or the summation of utility, derived from the consumption of all the units of a commodity. Algebraically, TUn = MU1 + MU2 + MU3 +.............. + MUn = ∑MU At the initial stage i.e. at the first unit of consumption, Marginal Utility MU and Total Utility TU are equal. That is, MU = TU.

Number of Units Consumed of Commodity (X) Total Utility (TU) (utils) Marginal Utility (MU)
MUn = TUn − TUn − 1 (utils)
1 50* 50 − 0 = 50*
2 100 100 − 50 = 50
3 130 130 − 100 = 30

* TU and MU are equal at the initial phase.

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 3.3 | Page 16
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