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Income Method

Marginal Util...

Question

Marginal Utility of money remains constant.

A

True

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B

False

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Solution

The correct option is B False
The marginal utility of money changes depending on the value of the money. That is, the value of the money changes depending on the inflation in the economy. A high inflation would mean a low value of money and low marginal utility and vice versa.

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Q. In marginal utility theory, marginal utility of money is ____________.

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Marginal Utility	$170$	$130$	$110$	$80$	$30$	$0$

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Q. Distinguish between :
Total Utility and Marginal Utility Diminishing Marginal Utility.

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