New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    The falling part of the Total utility

    shows
    A Increasing Marginal Utility Correct Answer Incorrect Answer
    B Decreasing Marginal Utility Correct Answer Incorrect Answer
    C Zero Marginal Utility Correct Answer Incorrect Answer
    D Negative Marginal Utility Correct Answer Incorrect Answer

    Solution

      When consumption is expanded beyond the point of satiety, the total utility starts falling because marginal utility turns negative.

    Practice Next