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Question 20 of 32
Q.

Observe the given table and answer the questions given below it:

Unity of a commodityTotal Utility (TU) unitsMarginal Utility (MU) units
16square
2square5
3154
415square
5square-1
Questions:
Complete the above table.
a. When the total utility is maximum, marginal utility is - square
b. When total utility falls, the marginal utility becomes - square
Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2023Subjective· 4mImportance★★★★★
63% · 20/32 Questions
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Using MU = TU(this unit) − TU(previous unit), the completed table is TU = 6, 11, 15, 15, 14 and MU = 6, 5, 4, 0, −1. When total utility is maximum, marginal utility is zero; when total utility falls, marginal utility becomes negative.

Marginal utility (MU) is the change in total utility (TU) from consuming one additional unit, i.e. MU of the nth unit = TU of n units − TU of (n−1) units. Using this the blanks are filled:

  • Unit 1: MU = TU(1) − TU(0) = 6 − 0 = 6
  • Unit 2: TU = TU(1) + MU(2) = 6 + 5 = 11
  • Unit 3: TU = 15, MU = 15 − 11 = 4 (given, consistent)
  • Unit 4: MU = TU(4) − TU(3) = 15 − 15 = 0
  • Unit 5: TU = TU(4) + MU(5) = 15 + (−1) = 14

Completed table:

UnitsTotal Utility (TU)Marginal Utility (MU)
166
2115
3154
4150
514-1
…

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