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Question
The aggregate utility obtained from the consumption of a specific unit of a commodity is called ______.
Options
Marginal utility
Total utility
Maximum utility
Additional utility
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Solution
The aggregate utility obtained from the consumption of a specific unit of a commodity is called Total utility.
Explanation:
Total Utility is the aggregate utility derived from the use of a single unit of a commodity. It denotes the complete satisfaction gained by consuming all feasible units of a good.
TU = ΣMU
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RELATED QUESTIONS
A consumer consumes only two goods X and Y and is in equilibrium. Show that when the price of good X rises, the consumer buys less of good X. Use utility analysis.
______ states that as the consumer will distribute his money income between the goods in such a way that the utility derived from the last rupee spent on each good is equal.
Match the following items in Group A to that in Group B and choose the correctly matched pair.
| Group A | Group B |
| (1) Assumption of Law of diminishing marginal utility. | (a) Homogeneous units of commodity |
| (2) Assumption of Law of equimarginal utility | (b) Continuous consumption without any time lag. |
| (3) Assumption of Law of diminishing total utility. | (c) Standard units of commodity |
| (4) Assumptions of Law of diminishing utility | (d) No change in tastes, preferences, or income of the consumer. |
Statement 1: A rational firm aims to operate in the second phase of the law of variable proportion.
Statement 2: In diminishing returns to a factor, i.e., the second phase of the law of variable proportion, MP falls.
______ states that as more and more units of a commodity are consumed, the marginal utility derived from the additional units must decline.
Total utility is ______ at the point of satiety.
Assertion (A): TU curve starts from the origin, increases at a decreasing rate, reaches a maximum, and then starts falling.
Reason (R): The rising MU curve shows the law of diminishing marginal utility.
Which of the following statement is false?
"The law states that a consumer will so allocate his expenditure so that the utility gained from the last rupee spent on each commodity is equal." Identify the law defined above.
When the marginal product becomes negative, then the total product starts ______
If the total satisfaction from eating three bananas is 22 utils, this total is known as ______.
What does "marginal utility" mean?
In consumer equilibrium, a consumer ______.
According to the concept of utility, why does demand usually rise when price falls?
