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Question
Assertion (A): TU curve starts from the origin, increases at a decreasing rate, reaches a maximum, and then starts falling.
Reason (R): The rising MU curve shows the law of diminishing marginal utility.
Options
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true, but Reason (R) is false.
Assertion (A) is false, but Reason (R) is true.
Solution
Assertion (A) is true, but Reason (R) is false.
Explanation:
The assertion is correct because it explains the shape of the TU curve, but the reasoning is incorrect. The correct statement is that the falling MU curve demonstrates the diminishing marginal utility law.
