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Which of the following equations is incorrect ?
MU= TUn+2 – TUn+1
MU= TU/Q
MU= TUn-TUn-1
TU= ∑MU
- Option 1: MU = TUn+2 – TUn+1
- This is incorrect and not the right formula for marginal utility (MU). MU should be the change in total utility when one extra unit is consumed, specifically (TUn - TUn-1).
- Option 2: MU = TU/Q
- This says marginal utility equals total utility divided by quantity, which is not correct. This is average utility, not marginal utility.
- Option 3: MU = TUn – TUn-1
- This is the correct formula for marginal utility. It measures the change in total utility as one more unit is consumed.
- Option 4: TU = ?MU
- This is correct. Total utility is the sum of marginal utilities of all units consumed.
By: santosh ProfileResourcesReport error
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