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Question
When TU is increasing at a decreasing rate MU will be ______.
Options
decreasing
constant
negative
increasing
MCQ
Fill in the Blanks
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Solution
When TU is increasing at a decreasing rate MU will be decreasing.
Explanation:
When total utility increases, marginal utility is positive; when total utility is maximum, marginal utility is zero, and when total utility decreases, marginal utility is negative.
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