Commerce Exam > Commerce Questions > Directions : In the following questions, a s...
Start Learning for Free
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): Rare commodities like antiques do not follow the law of diminishing marginal utility.
Reason (R): Law of marginal utility states that as more and more units of a commodity
are consumed, marginal utility derived from additional unit must decline.
- 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?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
Directions : In the following questions, a statement of Assertion (A)...
In economics, the law of diminishing marginal utility states that the marginal utility of a good or service declines as more of it is consumed by an individual. Economic actors receive less and less satisfaction from consuming incremental amounts of a good.
View all questions of this test
Most Upvoted Answer
Directions : In the following questions, a statement of Assertion (A)...
Assertion (A): Rare commodities like antiques do not follow the law of diminishing marginal utility.
Reason (R): Law of marginal utility states that as more and more units of a commodity are consumed, marginal utility derived from additional unit must decline.
The correct answer is option 'B', where both the assertion and the reason are true, but the reason is not the correct explanation of the assertion. Let's understand why.
Explanation:
Understanding the Law of Diminishing Marginal Utility:
The law of diminishing marginal utility states that as a consumer consumes more and more units of a commodity, the marginal utility derived from each additional unit will eventually decline. In simpler terms, the satisfaction or usefulness obtained from each additional unit of a commodity decreases as more units are consumed.
Applying the Law of Diminishing Marginal Utility to Antiques:
Antiques are rare commodities that hold historical, cultural, or artistic value. They are often considered unique and have a limited supply. Therefore, the law of diminishing marginal utility may not be applicable to antiques due to their rarity and the value they hold.
Reasoning for Assertion (A):
Rare commodities like antiques do not follow the law of diminishing marginal utility because their value and desirability may increase as their scarcity and uniqueness become more pronounced. The limited supply and high demand for antiques can lead to an increase in their marginal utility over time, rather than a decline.
Reasoning for Reason (R):
The reason provided in the question is correct. The law of marginal utility indeed states that as more units of a commodity are consumed, the marginal utility derived from each additional unit should decline. However, in the case of rare commodities like antiques, their scarcity and uniqueness can result in an increase in their perceived value and utility, which contradicts the law of diminishing marginal utility.
Conclusion:
In conclusion, while the reason provided in the question correctly explains the law of diminishing marginal utility, it does not apply to rare commodities like antiques. Antiques are exceptions to the law due to their rarity, limited supply, and the increased value they hold as a result. Therefore, option 'B' is the correct answer choice.
Reason (R): Law of marginal utility states that as more and more units of a commodity are consumed, marginal utility derived from additional unit must decline.
The correct answer is option 'B', where both the assertion and the reason are true, but the reason is not the correct explanation of the assertion. Let's understand why.
Explanation:
Understanding the Law of Diminishing Marginal Utility:
The law of diminishing marginal utility states that as a consumer consumes more and more units of a commodity, the marginal utility derived from each additional unit will eventually decline. In simpler terms, the satisfaction or usefulness obtained from each additional unit of a commodity decreases as more units are consumed.
Applying the Law of Diminishing Marginal Utility to Antiques:
Antiques are rare commodities that hold historical, cultural, or artistic value. They are often considered unique and have a limited supply. Therefore, the law of diminishing marginal utility may not be applicable to antiques due to their rarity and the value they hold.
Reasoning for Assertion (A):
Rare commodities like antiques do not follow the law of diminishing marginal utility because their value and desirability may increase as their scarcity and uniqueness become more pronounced. The limited supply and high demand for antiques can lead to an increase in their marginal utility over time, rather than a decline.
Reasoning for Reason (R):
The reason provided in the question is correct. The law of marginal utility indeed states that as more units of a commodity are consumed, the marginal utility derived from each additional unit should decline. However, in the case of rare commodities like antiques, their scarcity and uniqueness can result in an increase in their perceived value and utility, which contradicts the law of diminishing marginal utility.
Conclusion:
In conclusion, while the reason provided in the question correctly explains the law of diminishing marginal utility, it does not apply to rare commodities like antiques. Antiques are exceptions to the law due to their rarity, limited supply, and the increased value they hold as a result. Therefore, option 'B' is the correct answer choice.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
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): Rare commodities like antiques do not follow the law of diminishing marginal utility.Reason (R): Law of marginal utility states that as more and more units of a commodityare consumed, marginal utility derived from additional unit must decline.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?
Question Description
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): Rare commodities like antiques do not follow the law of diminishing marginal utility.Reason (R): Law of marginal utility states that as more and more units of a commodityare consumed, marginal utility derived from additional unit must decline.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): Rare commodities like antiques do not follow the law of diminishing marginal utility.Reason (R): Law of marginal utility states that as more and more units of a commodityare consumed, marginal utility derived from additional unit must decline.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): Rare commodities like antiques do not follow the law of diminishing marginal utility.Reason (R): Law of marginal utility states that as more and more units of a commodityare consumed, marginal utility derived from additional unit must decline.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): Rare commodities like antiques do not follow the law of diminishing marginal utility.Reason (R): Law of marginal utility states that as more and more units of a commodityare consumed, marginal utility derived from additional unit must decline.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): Rare commodities like antiques do not follow the law of diminishing marginal utility.Reason (R): Law of marginal utility states that as more and more units of a commodityare consumed, marginal utility derived from additional unit must decline.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): Rare commodities like antiques do not follow the law of diminishing marginal utility.Reason (R): Law of marginal utility states that as more and more units of a commodityare consumed, marginal utility derived from additional unit must decline.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): Rare commodities like antiques do not follow the law of diminishing marginal utility.Reason (R): Law of marginal utility states that as more and more units of a commodityare consumed, marginal utility derived from additional unit must decline.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.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of 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): Rare commodities like antiques do not follow the law of diminishing marginal utility.Reason (R): Law of marginal utility states that as more and more units of a commodityare consumed, marginal utility derived from additional unit must decline.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? defined & explained in the simplest way possible. Besides giving the explanation of
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): Rare commodities like antiques do not follow the law of diminishing marginal utility.Reason (R): Law of marginal utility states that as more and more units of a commodityare consumed, marginal utility derived from additional unit must decline.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?, a detailed solution 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): Rare commodities like antiques do not follow the law of diminishing marginal utility.Reason (R): Law of marginal utility states that as more and more units of a commodityare consumed, marginal utility derived from additional unit must decline.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? has been provided alongside types of 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): Rare commodities like antiques do not follow the law of diminishing marginal utility.Reason (R): Law of marginal utility states that as more and more units of a commodityare consumed, marginal utility derived from additional unit must decline.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? theory, EduRev gives you an
ample number of questions to practice 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): Rare commodities like antiques do not follow the law of diminishing marginal utility.Reason (R): Law of marginal utility states that as more and more units of a commodityare consumed, marginal utility derived from additional unit must decline.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? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup