Question 18 of 32
Q.MU of the commodity becomes negative when TU of a commodity is ______.
(a) rising
(b) constant
(c) falling
(d) zero
Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2023MCQ· 1mImportance★★★★★
56% · 18/32 Questions
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Start your 14-day free trial to unlock the full solution →MU of a commodity becomes negative when its TU is falling — that is, only after the point of maximum total utility (saturation) has been crossed.
Marginal utility is the change in total utility from consuming one additional unit of a commodity (MU of the nth unit = TU of n units minus TU of (n-1) units). As a consumer keeps consuming more units:
- While TU rises, MU is positive (though diminishing).
- When TU is maximum, MU is zero — this is the point of satiety. …
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