CA Foundation Exam  >  CA Foundation Questions  >  Total utility starts decreasing when ______.a... Start Learning for Free
Total utility starts decreasing when ______.
  • a)
    Marginal utility is positive
  • b)
    Marginal utility becomes negative
  • c)
    Marginal utility becomes zero
  • d)
    None of the above.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Total utility starts decreasing when ______.a)Marginal utility is posi...
Explanation:

Total utility denotes the total satisfaction that a consumer derives from the consumption of a particular good or service. It is the sum of all marginal utilities derived from each unit of the good consumed.

Marginal utility, on the other hand, refers to the additional satisfaction derived from consuming one additional unit of the good.

Now, let's understand the given options:

a) Marginal utility is positive: When the marginal utility is positive, it means that the additional unit of the good consumed is providing additional satisfaction to the consumer. In this case, the total utility will keep increasing.

b) Marginal utility becomes negative: When the marginal utility becomes negative, it means that the additional unit of the good consumed is actually reducing the total satisfaction derived from the consumption of the good. In this case, the total utility will start decreasing.

c) Marginal utility becomes zero: When the marginal utility becomes zero, it means that the additional unit of the good consumed is not providing any additional satisfaction to the consumer. However, it does not necessarily mean that the total utility will start decreasing. It can remain constant or start decreasing, depending on the previous levels of marginal utility.

d) None of the above: As we have seen above, option B is the correct answer as it states that the total utility starts decreasing when the marginal utility becomes negative.

In conclusion, the total utility will start decreasing when the marginal utility becomes negative as the additional unit consumed starts reducing the total satisfaction derived from the consumption of the good.
Free Test
Community Answer
Total utility starts decreasing when ______.a)Marginal utility is posi...
Bcz when mu increasing tu also increasing ,as mu falls down/decreasing tu increases but at the diminishing rate ,when mu is 0 tu is at their higher point but as the mu goes down i.e. negative tu starts declining.
Explore Courses for CA Foundation exam
Total utility starts decreasing when ______.a)Marginal utility is positiveb)Marginal utility becomes negativec)Marginal utility becomes zerod)None of the above.Correct answer is option 'B'. Can you explain this answer?
Question Description
Total utility starts decreasing when ______.a)Marginal utility is positiveb)Marginal utility becomes negativec)Marginal utility becomes zerod)None of the above.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Total utility starts decreasing when ______.a)Marginal utility is positiveb)Marginal utility becomes negativec)Marginal utility becomes zerod)None of the above.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Total utility starts decreasing when ______.a)Marginal utility is positiveb)Marginal utility becomes negativec)Marginal utility becomes zerod)None of the above.Correct answer is option 'B'. Can you explain this answer?.
Solutions for Total utility starts decreasing when ______.a)Marginal utility is positiveb)Marginal utility becomes negativec)Marginal utility becomes zerod)None of the above.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Total utility starts decreasing when ______.a)Marginal utility is positiveb)Marginal utility becomes negativec)Marginal utility becomes zerod)None of the above.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Total utility starts decreasing when ______.a)Marginal utility is positiveb)Marginal utility becomes negativec)Marginal utility becomes zerod)None of the above.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Total utility starts decreasing when ______.a)Marginal utility is positiveb)Marginal utility becomes negativec)Marginal utility becomes zerod)None of the above.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Total utility starts decreasing when ______.a)Marginal utility is positiveb)Marginal utility becomes negativec)Marginal utility becomes zerod)None of the above.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Total utility starts decreasing when ______.a)Marginal utility is positiveb)Marginal utility becomes negativec)Marginal utility becomes zerod)None of the above.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev