Microeconomics: Theory of Consumer Behaviour · Class 11 · CBSE · Commerce Economics
When marginal utility of a commodity is positive but continuously diminishing, total utility generally:
Practice question from Microeconomics: Theory of Consumer Behaviour (Class 11 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
easy · MCQ · Q-9FF875
When marginal utility of a commodity is positive but continuously diminishing, total utility generally:
- A.Falls at an increasing rate
- B.Increases at a diminishing rateCorrect answer
- C.Remains constant
- D.Becomes zero immediately
Solution
When marginal utility is positive, each additional unit adds to total utility. If marginal utility diminishes, the additions become smaller, so total utility increases at a diminishing rate.
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