Which of the following statements describe correct patterns for total and marginal utilities? (Select all correct answers) A Marginal utility decreases but cannot become negative.
Which of the following statements describe correct patterns for total and marginal utilities? (Select all correct answers) A Marginal utility decreases but cannot become negative.
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 1.3P
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Relationship between TU and MU
1) Tu increase at Diminishing rate when consumption of the commodity increses as long as MU is positive. But MU diminishes as consumption increase.
2) when TU is at its maximum point MU = 0
3) after this point when Consumption rises TU start falling and MU became negative.
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