Advertisements
Advertisements
Question
Which of the following statement is false?
Options
When MU is negative, TU will be increasing.
When MU is positive, TU will be decreasing.
When MU is zero, TU is maximum.
None of these
MCQ
Solution
When MU is zero, TU is maximum.
Explanation:
Relationship between Total Utility and Marginal Utility:
(i) When the MU is positive, the TU rises.
(ii) TU is greatest when MU is zero.
(iii) When MU is negative, the value of TU decreases.
shaalaa.com
Cardinal Approach (Utility Analysis)
Is there an error in this question or solution?