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The larger th...

Question

The larger the stock of a commodity the higher is its marginal utility.

A

True

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B

False

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Solution

The correct option is B False
The higher the stock of a commodity the lower would be the price of the product. We also know that higher the price of a product the higher would be the marginal utility of the product. Hence, a higher supply would mean a lower price which would mean a lower marginal utility.

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