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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): Law of diminishing marginal utility states that as more and more units of a commodity are consumed, marginal utility derived from every additional unit must decline.
Reason (R): When MU is negative, TU will be decreasing.
- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false .
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'B'. Can you explain this answer?
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Directions : In the following questions, a statement of Assertion (A)...
The Law Of Diminishing Marginal Utility states that, all else equal, as consumption increases, the marginal utility derived from each additional unit declines. Marginal utility is derived as the change in utility as an additional unit is consumed. Utility is an economic term used to represent satisfaction or happiness.
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Total utility is the sum of all marginal utilities derived from consumption of each additional unit of a commodity. When marginal utility becomes negative the addition to total utility will be negative, thus, leading to diminishing total utility.
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Directions : In the following questions, a statement of Assertion (A)...
Law of Diminishing Marginal Utility
The law of diminishing marginal utility is an economic concept that states that as more and more units of a commodity are consumed, the marginal utility derived from every additional unit must decline. In other words, the satisfaction or utility obtained from consuming each additional unit of a good or service decreases as the quantity consumed increases.
Negative Marginal Utility and Total Utility
When the marginal utility (MU) of a commodity is negative, it means that consuming an additional unit of the commodity actually reduces the total utility (TU) derived from consuming the previous units. This occurs when the additional unit is of lower quality or has a negative effect on overall satisfaction.
Explanation of the Assertion and Reason
Assertion (A): The law of diminishing marginal utility states that as more and more units of a commodity are consumed, marginal utility derived from every additional unit must decline.
Reason (R): When MU is negative, TU will be decreasing.
The correct answer is option 'B' - Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
The law of diminishing marginal utility is a well-established concept in economics, which suggests that as consumption of a commodity increases, the marginal utility derived from each additional unit consumed will decrease. This is because individuals tend to satisfy their most urgent needs or desires first, and as they consume more, the satisfaction gained from each additional unit diminishes.
On the other hand, the reason provided in the statement is not an accurate explanation of the law of diminishing marginal utility. While it is true that when the marginal utility is negative, the total utility will decrease, it does not fully explain the concept of diminishing marginal utility. The law of diminishing marginal utility applies even when the marginal utility is positive but decreasing.
Therefore, while both the assertion and reason are true, the reason does not provide a correct explanation for the assertion. The law of diminishing marginal utility is a broader concept that applies to all situations where marginal utility decreases with increased consumption, regardless of whether the marginal utility is negative or positive.
The law of diminishing marginal utility is an economic concept that states that as more and more units of a commodity are consumed, the marginal utility derived from every additional unit must decline. In other words, the satisfaction or utility obtained from consuming each additional unit of a good or service decreases as the quantity consumed increases.
Negative Marginal Utility and Total Utility
When the marginal utility (MU) of a commodity is negative, it means that consuming an additional unit of the commodity actually reduces the total utility (TU) derived from consuming the previous units. This occurs when the additional unit is of lower quality or has a negative effect on overall satisfaction.
Explanation of the Assertion and Reason
Assertion (A): The law of diminishing marginal utility states that as more and more units of a commodity are consumed, marginal utility derived from every additional unit must decline.
Reason (R): When MU is negative, TU will be decreasing.
The correct answer is option 'B' - Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
The law of diminishing marginal utility is a well-established concept in economics, which suggests that as consumption of a commodity increases, the marginal utility derived from each additional unit consumed will decrease. This is because individuals tend to satisfy their most urgent needs or desires first, and as they consume more, the satisfaction gained from each additional unit diminishes.
On the other hand, the reason provided in the statement is not an accurate explanation of the law of diminishing marginal utility. While it is true that when the marginal utility is negative, the total utility will decrease, it does not fully explain the concept of diminishing marginal utility. The law of diminishing marginal utility applies even when the marginal utility is positive but decreasing.
Therefore, while both the assertion and reason are true, the reason does not provide a correct explanation for the assertion. The law of diminishing marginal utility is a broader concept that applies to all situations where marginal utility decreases with increased consumption, regardless of whether the marginal utility is negative or positive.
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Law of diminishing marginal utility states that as more and more units of a commodity are consumed, marginal utility derived from every additional unit must decline.Reason (R): When MU is negative, TU will be decreasing.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer?
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Law of diminishing marginal utility states that as more and more units of a commodity are consumed, marginal utility derived from every additional unit must decline.Reason (R): When MU is negative, TU will be decreasing.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Law of diminishing marginal utility states that as more and more units of a commodity are consumed, marginal utility derived from every additional unit must decline.Reason (R): When MU is negative, TU will be decreasing.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Law of diminishing marginal utility states that as more and more units of a commodity are consumed, marginal utility derived from every additional unit must decline.Reason (R): When MU is negative, TU will be decreasing.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer?.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Law of diminishing marginal utility states that as more and more units of a commodity are consumed, marginal utility derived from every additional unit must decline.Reason (R): When MU is negative, TU will be decreasing.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Law of diminishing marginal utility states that as more and more units of a commodity are consumed, marginal utility derived from every additional unit must decline.Reason (R): When MU is negative, TU will be decreasing.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Law of diminishing marginal utility states that as more and more units of a commodity are consumed, marginal utility derived from every additional unit must decline.Reason (R): When MU is negative, TU will be decreasing.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer?.
Solutions for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Law of diminishing marginal utility states that as more and more units of a commodity are consumed, marginal utility derived from every additional unit must decline.Reason (R): When MU is negative, TU will be decreasing.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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