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When total utility increase at a diminishing rate, marginal utility is
- a)Zero
- b)Diminishing
- c)One
- d)Maximum
Correct answer is option 'B'. Can you explain this answer?
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When total utility increase at a diminishing rate, marginal utility is...
Explanation:
Total utility is the overall satisfaction or usefulness that a consumer derives from consuming a certain quantity of a product. Marginal utility, on the other hand, is the additional satisfaction or usefulness that a consumer derives from consuming one additional unit of a product.
When the total utility increases at a diminishing rate, it means that the consumer is still deriving additional satisfaction from consuming more units of the product, but the rate of increase in satisfaction is decreasing with each additional unit consumed. This is due to the law of diminishing marginal utility, which states that as a consumer consumes more units of a product, the additional satisfaction that they derive from each additional unit decreases.
Therefore, when the total utility increases at a diminishing rate, the marginal utility is said to be diminishing. This means that each additional unit consumed is providing less additional satisfaction than the previous unit consumed.
In summary, when total utility increases at a diminishing rate, it indicates that the law of diminishing marginal utility is at work, and the marginal utility is said to be diminishing.
Total utility is the overall satisfaction or usefulness that a consumer derives from consuming a certain quantity of a product. Marginal utility, on the other hand, is the additional satisfaction or usefulness that a consumer derives from consuming one additional unit of a product.
When the total utility increases at a diminishing rate, it means that the consumer is still deriving additional satisfaction from consuming more units of the product, but the rate of increase in satisfaction is decreasing with each additional unit consumed. This is due to the law of diminishing marginal utility, which states that as a consumer consumes more units of a product, the additional satisfaction that they derive from each additional unit decreases.
Therefore, when the total utility increases at a diminishing rate, the marginal utility is said to be diminishing. This means that each additional unit consumed is providing less additional satisfaction than the previous unit consumed.
In summary, when total utility increases at a diminishing rate, it indicates that the law of diminishing marginal utility is at work, and the marginal utility is said to be diminishing.
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When total utility increase at a diminishing rate, marginal utility is...
Diminishing
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When total utility increase at a diminishing rate, marginal utility isa)Zerob)Diminishingc)Oned)MaximumCorrect answer is option 'B'. Can you explain this answer?
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