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Which one of the following statements is not correct?
- a)When total utility is maximum, marginal utility is zero
- b)When total utility is decreasing, marginal utility is negative
- c)When total utility is increasing, marginal utility is positive
- d)When total utility is maximum, marginal and average utility is equal to each other.
Correct answer is option 'D'. Can you explain this answer?
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Which one of the following statements is not correct?a)When total util...
Total utility - It is total psychological satisfaction which a consumer derives from the consumption of a commodity is known as total utility
Marginal utility - It is an addition made in total utility by consuming and additional unit of a commodity is known as a marginal utility.
Marginal utility - It is an addition made in total utility by consuming and additional unit of a commodity is known as a marginal utility.
- When marginal utility is positive, total utility increases
- When marginal utility is zero, total utility is at maximum
- When marginal utility is negative, total utility decreases
Most Upvoted Answer
Which one of the following statements is not correct?a)When total util...
Explanation:
When total utility is maximum, marginal and average utility is equal to each other.
Total Utility and Marginal Utility:
- Total utility refers to the overall satisfaction or usefulness that a consumer derives from consuming a certain quantity of a good or service.
- Marginal utility, on the other hand, refers to the additional utility or satisfaction gained from consuming one additional unit of a good or service.
Relationship between Total Utility and Marginal Utility:
- Total utility increases with the consumption of additional units of a good or service, but at a diminishing rate. This means that as more units are consumed, the increase in total utility becomes smaller and smaller.
- Marginal utility, on the other hand, decreases as more units of a good or service are consumed. This is because the additional satisfaction gained from each additional unit diminishes.
Correct Statements:
a) When total utility is maximum, marginal utility is zero.
- This statement is correct. When total utility is maximum, it means that no additional units of the good or service can be consumed to increase satisfaction further. Therefore, the marginal utility of the additional unit consumed becomes zero.
b) When total utility is decreasing, marginal utility is negative.
- This statement is correct. When total utility is decreasing, it means that consuming additional units of the good or service is reducing overall satisfaction. In this case, the marginal utility of the additional unit consumed becomes negative.
c) When total utility is increasing, marginal utility is positive.
- This statement is correct. When total utility is increasing, it means that consuming additional units of the good or service is increasing overall satisfaction. In this case, the marginal utility of the additional unit consumed is positive.
Incorrect Statement:
d) When total utility is maximum, marginal and average utility is equal to each other.
- This statement is incorrect. When total utility is maximum, it does not necessarily mean that marginal and average utility are equal. Marginal utility represents the additional satisfaction gained from consuming one additional unit, while average utility represents the total utility divided by the number of units consumed. These two measures can be different even when total utility is maximum.
In conclusion, the correct answer is option 'D' because when total utility is maximum, marginal and average utility are not necessarily equal.
When total utility is maximum, marginal and average utility is equal to each other.
Total Utility and Marginal Utility:
- Total utility refers to the overall satisfaction or usefulness that a consumer derives from consuming a certain quantity of a good or service.
- Marginal utility, on the other hand, refers to the additional utility or satisfaction gained from consuming one additional unit of a good or service.
Relationship between Total Utility and Marginal Utility:
- Total utility increases with the consumption of additional units of a good or service, but at a diminishing rate. This means that as more units are consumed, the increase in total utility becomes smaller and smaller.
- Marginal utility, on the other hand, decreases as more units of a good or service are consumed. This is because the additional satisfaction gained from each additional unit diminishes.
Correct Statements:
a) When total utility is maximum, marginal utility is zero.
- This statement is correct. When total utility is maximum, it means that no additional units of the good or service can be consumed to increase satisfaction further. Therefore, the marginal utility of the additional unit consumed becomes zero.
b) When total utility is decreasing, marginal utility is negative.
- This statement is correct. When total utility is decreasing, it means that consuming additional units of the good or service is reducing overall satisfaction. In this case, the marginal utility of the additional unit consumed becomes negative.
c) When total utility is increasing, marginal utility is positive.
- This statement is correct. When total utility is increasing, it means that consuming additional units of the good or service is increasing overall satisfaction. In this case, the marginal utility of the additional unit consumed is positive.
Incorrect Statement:
d) When total utility is maximum, marginal and average utility is equal to each other.
- This statement is incorrect. When total utility is maximum, it does not necessarily mean that marginal and average utility are equal. Marginal utility represents the additional satisfaction gained from consuming one additional unit, while average utility represents the total utility divided by the number of units consumed. These two measures can be different even when total utility is maximum.
In conclusion, the correct answer is option 'D' because when total utility is maximum, marginal and average utility are not necessarily equal.
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Which one of the following statements is not correct?a)When total utility is maximum, marginal utility is zerob)When total utility is decreasing, marginal utility is negativec)When total utility is increasing, marginal utility is positived)When total utility is maximum, marginal and average utility is equal to each other.Correct answer is option 'D'. Can you explain this answer?
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Which one of the following statements is not correct?a)When total utility is maximum, marginal utility is zerob)When total utility is decreasing, marginal utility is negativec)When total utility is increasing, marginal utility is positived)When total utility is maximum, marginal and average utility is equal to each other.Correct answer is option 'D'. Can you explain this answer? for Defence 2024 is part of Defence preparation. The Question and answers have been prepared according to the Defence exam syllabus. Information about Which one of the following statements is not correct?a)When total utility is maximum, marginal utility is zerob)When total utility is decreasing, marginal utility is negativec)When total utility is increasing, marginal utility is positived)When total utility is maximum, marginal and average utility is equal to each other.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Defence 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one of the following statements is not correct?a)When total utility is maximum, marginal utility is zerob)When total utility is decreasing, marginal utility is negativec)When total utility is increasing, marginal utility is positived)When total utility is maximum, marginal and average utility is equal to each other.Correct answer is option 'D'. Can you explain this answer?.
Which one of the following statements is not correct?a)When total utility is maximum, marginal utility is zerob)When total utility is decreasing, marginal utility is negativec)When total utility is increasing, marginal utility is positived)When total utility is maximum, marginal and average utility is equal to each other.Correct answer is option 'D'. Can you explain this answer? for Defence 2024 is part of Defence preparation. The Question and answers have been prepared according to the Defence exam syllabus. Information about Which one of the following statements is not correct?a)When total utility is maximum, marginal utility is zerob)When total utility is decreasing, marginal utility is negativec)When total utility is increasing, marginal utility is positived)When total utility is maximum, marginal and average utility is equal to each other.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Defence 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one of the following statements is not correct?a)When total utility is maximum, marginal utility is zerob)When total utility is decreasing, marginal utility is negativec)When total utility is increasing, marginal utility is positived)When total utility is maximum, marginal and average utility is equal to each other.Correct answer is option 'D'. Can you explain this answer?.
Solutions for Which one of the following statements is not correct?a)When total utility is maximum, marginal utility is zerob)When total utility is decreasing, marginal utility is negativec)When total utility is increasing, marginal utility is positived)When total utility is maximum, marginal and average utility is equal to each other.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Defence.
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Which one of the following statements is not correct?a)When total utility is maximum, marginal utility is zerob)When total utility is decreasing, marginal utility is negativec)When total utility is increasing, marginal utility is positived)When total utility is maximum, marginal and average utility is equal to each other.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Which one of the following statements is not correct?a)When total utility is maximum, marginal utility is zerob)When total utility is decreasing, marginal utility is negativec)When total utility is increasing, marginal utility is positived)When total utility is maximum, marginal and average utility is equal to each other.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Which one of the following statements is not correct?a)When total utility is maximum, marginal utility is zerob)When total utility is decreasing, marginal utility is negativec)When total utility is increasing, marginal utility is positived)When total utility is maximum, marginal and average utility is equal to each other.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
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