Question 20 of 32
Q.
Observe the given table and answer the questions given below it:
| Unity of a commodity | Total Utility (TU) units | Marginal Utility (MU) units |
|---|---|---|
| 1 | 6 | square |
| 2 | square | 5 |
| 3 | 15 | 4 |
| 4 | 15 | square |
| 5 | square | -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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Start your 14-day free trial to unlock the full solution →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:
| Units | Total Utility (TU) | Marginal Utility (MU) |
|---|---|---|
| 1 | 6 | 6 |
| 2 | 11 | 5 |
| 3 | 15 | 4 |
| 4 | 15 | 0 |
| 5 | 14 | -1 |
| … |
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