Advertisements
Advertisements
Question
Explain, with reasons, whether you Agree or Disagree with the following statement
There is no relationship between marginal utility and total utility.
Solution
Disagree. There is a relationship between marginal utility and total utility. The following points highlight the relationship between TU (Total Utility) and MU (Marginal Utility).
i. As more and more units of the commodity are consumed, the marginal utility derived from the consumption of each additional unit of the commodity tends to fall. With the consumption of the successive units, the marginal utility becomes zero and, consequently, becomes negative.
ii. As long as MU, derived from the consumption of additional units of the commodity, is positive, TU continues to rise.
iii. When TU reaches the maximum point, MU becomes zero.
iv. When TU starts falling, MU becomes negative.
v. MU is derived from TU as:
MUn = TUn − TUn −1
vi. TU is defined as the summation of all the marginal utility values, given as:
TUn = MU1+MU2+ MU3+..............+MUn = ∑MU.
APPEARS IN
RELATED QUESTIONS
Explain Place utility and Time utility?
Answer the following question .
Explain the types of utility.
Define or explain the following concept.
Service utility.
Distinguish between (Any Three)
From Utility and Place Utility.
Distinguish between Any FOUR of the following :
Utility and Usefulness.
State whether the following statements are TRUE or FALSE :
Utility is subjective.
State whether the following statements are True or False with reasons :
Utility of the same commodity for two persons is different.
Define or explain the following concept:
Possession utility
Define or explain the following concept:
Knowledge utility
Distinguish between:
Place utility and Time utility
Write short note on:
Form utility
Choose the correct option:
| Column A | Column B |
| 1) Time utility | a) Transport |
| 2) Place utility | b) Blood bank |
| 3) Service utility | c) Mobile phone |
| 4) Knowledge utility | d) Doctor |
Identify and explain the concept from the given illustration:
Salma purchased a sweater for her father in the winter season.
Identify and explain the concept from the given illustration:
Nilesh purchased ornaments for his sister.
Give economic term:
Swati purchased raincoat for her father in rainy season.
Complete the correlation:
______ : Chair from wood : : Knowledge utility : Textbook.
Find the odd word out:
Service utility:
Give an economic term:
Utility is derived from changing the size, shape, appearance, etc., of a commodity.
Find the odd word out:
Types of utility:
Give an economic term:
A utility derived by making pots from clay.
Identify and explain the concept from the given illustration:
Shailesh purchased ornaments for his sister.
Blood donation has ______ utility.
Find the odd word out:
Form utility:
Blood bank is an example of ______.
- Place utility
- Knowledge utility
- Service utility
- Time utility
Form utility : Furniture : : ______ : Doctor
