Advertisements
Advertisements
Question
Utility maximising consumers would like to decrease the consumption when ______.
Options
MUx = Px
MUx > Px
MUx < Px
MUx = Py
Solution
Utility maximising consumers would like to decrease the consumption when MUx < Px.
APPEARS IN
RELATED QUESTIONS
Answer the following question.
Explain the relationship between Total utility and Marginal utility.
Answer the following question :
Explain the relationship between ‘total utility’ and ‘marginal utility’.
State whether the following statements are TRUE or FALSE:
Marginal utility increases with increase in consumption.
State whether the following statements are TRUE or FALSE:
In deficit budget, expenditure is more than income.
Choose the correct answer :
The capacity of a commodity to satisfy human want is known as _________.
Do you agree with the following statements? Give reasons.
Marginal utility and Total utility is same.
Fill in the blanks with appropriate alternatives given in the bracket.
Marginal consumption function is always ________.
Fill in the blank with appropriate alternatives given below:
_________________ utility is the utility derived from the last unit of the commodity consumed.
Fill in the blank with appropriate alternatives given below:
When MU is ______________ TU decreases.
State the following statement is True or False:
MU and TU are equal at the initial stage.
Define or explain the following concept:
Total utility
Define or explain the following concept:
Marginal utility
Answer the following question.
Define marginal utility. When can it be negative?
Answer the following question.
Discuss briefly, using a hypothetical schedule, the relation between marginal utility and total utility.
Explain the Law of Equi-Marginal Utility
