Which one of the following statements is not correct ........

Indian Economy (CDS) Introduction

Download Solution PDF

Which one of the following statements is not correct?

When total utility is maximum, marginal utility is zero

When total utility is decreasing, marginal utility is negative

When total utility is increasing, marginal utility is positive

When total utility is maximum, marginal and average utility are equal to each other.

छोटे Courses बड़े Results

Master Introduction

Prepare through Micro-courses

Try Now

Explanation:

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. • When marginal utility is positive, total utility increases • When marginal utility is zero, total utility is at maximum • When marginal utility is negative, total utility decreases.