Marginal Utility

Q.

What Is the Relationship Between Total Utility and Marginal Utility?

Q.

How Do I Calculate Marginal Utility?

Q.

What Are the Types of Marginal Utility?

Q.

When Marginal Utility Is Negative, Total Utility Is?

Q.

In 2007, out of a total of 2000 applicants in a college, 200 were from commerce background. The no of girls was 750, out of which 330 were from science stream. In 2008, the total no of applicants was 3500 of which 2200 were boys. The no of students from science stream was 1100 of which 610 were girls. Tabulate the given information.

Q.

Total utility is maximum when ---

Q. When marginal utility (MU) is zero, total utility (TU) diminishes.

1. True
2. False

Q. When the marginal utility is the maximum, the total utility will be zero.

1. True
2. False

Q. Explain the relationship between 'total utility' and 'marginal utility'?

Q. When marginal utility is zero, the total utility is _______.

1. Minimum
2. Increasing
3. Maximum
4. Decreasing

Q.

State With Reason Whether You Agree or Disagree

Q. When total utility (TU) increases marginal utility (MU) is negative.

1. True
2. False

Q. When total utility becomes maximum, then marginal utility will be ______.

1. Minimum
2. Average
3. Zero
4. Negative

Q. When total utility is maximum, marginal utility becomes ___________.

1. zero
2. unity
3. negative
4. positive

Q.
Total utility is maximum when marginal utility starts declining.

1. True
2. False

Q. Answer the following question briefly:
Define total utility. How is marginal utility derived from the total utility?

Q. At the time of consumption of __________ Total utility, Average utility, Marginal utility are same.

1. 1st unit
2. 2nd unit
3. 3rd unit
4. 4th unit

Q. The additional satisfaction a consumer gains from consuming one more unit of a goods or service is:

1. Total utility
2. Average utility
3. Marginal utility
4. Disutility

Q. Define total utility and marginal utility.

Q. The change in total utility a person derives from consumption of an additional unit of a good is called _______.

1. utility
2. total utility
3. variable utility
4. marginal utility

Q. Marginal utility of a particular commodity at the point of saturation is ________.

1. zero
2. unity
3. greater than unity
4. less than unity

Q. Want satisfying power of a commodity is called ________.

1. consumption
2. value addition
3. utility
4. production

Q. When marginal utility is negative, total utility is __________.

1. zero
2. diminishing
3. maximum
4. minimum

Q. The law of diminishing marginal utility applies to __________.

1. government spending
2. operations of the firm
3. all of the above
4. household consumption

Q. Total utility increases at increasing rate.

1. True
2. False

Q.
Total utility will increase even when marginal utility decreases.

1. True
2. False

Q. When marginal utility is negative, total utility will be __________.

1. increasing
2. decreasing
3. constant
4. zero

Q. When marginal utility falls than average utility?

1. rises abruptly
2. falls abruptly
3. rises gradually
4. falls gradually

Q. Marginal utility is equal to average utility at that time when average utility is _____.

1. increasing
2. maximum
3. falling
4. minimum

Q. The point at which the total utility derived by a consumer is the maximum called ________.

1. climax
2. point of saturation
3. top hill
4. maxima point