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At what point does total utility starts diminishing?
- a)When marginal utility remains constant
- b)When marginal utility is increasing
- c)When marginal utility is negative
- d)When marginal utility is negative
Correct answer is option 'D'. Can you explain this answer?
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Verified Answer
At what point does total utility starts diminishing?a)When marginal ut...
The law of diminishing marginal utility is a law of economics stating that as a person in creases consumption of a products while keeping consumption of other product costant , there is a decline in the marginal utility that persob derives from consuming each additional unit of product.
Most Upvoted Answer
At what point does total utility starts diminishing?a)When marginal ut...
Correct answer is D The law of diminishing marginal utility is a law of economics stating that as a person in creases consumption of a products while keeping consumption of other product costant , there is a decline in the marginal utility that persob derives from consuming each additional unit of product.
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At what point does total utility starts diminishing?a)When marginal ut...
When does total utility start diminishing?
Total utility starts diminishing when marginal utility is negative.
Explanation:
- Marginal Utility: Marginal utility refers to the additional satisfaction gained from consuming one more unit of a good or service. It is the change in total utility resulting from consuming an additional unit of a product.
- Diminishing Marginal Utility: The law of diminishing marginal utility states that as a person consumes more of a good or service, the additional satisfaction or utility gained from each additional unit decreases. This leads to a point where marginal utility becomes negative.
- Total Utility: Total utility is the overall satisfaction or benefit a consumer derives from consuming a certain quantity of a good or service. It is the sum of the marginal utilities of each unit consumed.
- Point of Diminishing Total Utility: When marginal utility becomes negative, it means that the additional units consumed are actually reducing the total satisfaction or utility derived from the product. This leads to a decrease in total utility, indicating the point at which total utility starts diminishing.
In conclusion, total utility starts diminishing when marginal utility turns negative, signifying that the additional consumption of a product is no longer adding to the overall satisfaction of the consumer.
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At what point does total utility starts diminishing?a)When marginal utility remains constantb)When marginal utility is increasingc)When marginal utility is negatived)When marginal utility is negativeCorrect answer is option 'D'. Can you explain this answer?
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At what point does total utility starts diminishing?a)When marginal utility remains constantb)When marginal utility is increasingc)When marginal utility is negatived)When marginal utility is negativeCorrect answer is option 'D'. 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 At what point does total utility starts diminishing?a)When marginal utility remains constantb)When marginal utility is increasingc)When marginal utility is negatived)When marginal utility is negativeCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for At what point does total utility starts diminishing?a)When marginal utility remains constantb)When marginal utility is increasingc)When marginal utility is negatived)When marginal utility is negativeCorrect answer is option 'D'. Can you explain this answer?.
At what point does total utility starts diminishing?a)When marginal utility remains constantb)When marginal utility is increasingc)When marginal utility is negatived)When marginal utility is negativeCorrect answer is option 'D'. 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 At what point does total utility starts diminishing?a)When marginal utility remains constantb)When marginal utility is increasingc)When marginal utility is negatived)When marginal utility is negativeCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for At what point does total utility starts diminishing?a)When marginal utility remains constantb)When marginal utility is increasingc)When marginal utility is negatived)When marginal utility is negativeCorrect answer is option 'D'. Can you explain this answer?.
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