Question

    Which one of the following statements is not

    correct?
    A When total utility is maximum, marginal utility is zero Correct Answer Incorrect Answer
    B When total utility is decreasing, marginal utility is negative Correct Answer Incorrect Answer
    C When total utility is increasing, marginal utility is positive Correct Answer Incorrect Answer
    D When total utility is maximum, marginal and average utility are equal to each other. Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Total utility - It is total psychological satisfaction which a consumer derives from the consumption of a commodity is known as total utility Marginal utility - It is an addition made in total utility by consuming and additional unit of a commodity is known as marginal utility.

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