Question
As the consumer has more units of a commodity, his total utility from the commodity:
  1. Increases less than in proportion, reaches a maximum and then falls.
  2. Increases less than in proportion and then falls.
  3. Increases more than in proportion and then reaches a maximum.
  4. Falls, becomes zero and then negative.

Answer

  1. Increases less than in proportion, reaches a maximum and then falls.

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Similar questions

The production function is related to-
At the Break-even point:
  1. C > Y
  2. C = Y
  3. C < Y
  4. None of these.
When the total fixed cost of producing 100 units is ₹ 30 and the average variable cost is ₹ 3, total cost is: (Choose the correct alternative)
  1. ₹ 3
  2. ₹ 30
  3. ₹ 270
  4. ₹ 330
The supply of a commodity implies:
  1. Actual product of a good.
  2. Stock available for sale.
  3. Total existing stock of the good.
  4. The amount of goods offered for sale at a different prices, per unit of time.
What is the formula of APS?

  1. $\text{APS}=\frac{\Delta\text{C}}{\Delta\text{Y}}$

  2. $\text{APS}=\frac{\Delta\text{S}}{\Delta\text{Y}}$

  3. $\text{APS}=\frac{\text{Y}}{\text{S}}$

  4. $\text{APS}=\frac{\text{S}}{\text{Y}}$

In the short run, when a firm produces zero output, its total cost is equal to:
  1. Zero.
  2. Variable cost.
  3. Fixed cost.
  4. Marginal cost.
Price theory studies the problem of:
  1. What goods to produce and how much to produce.
  2. How to produce.
  3. For whom to produce.
  4. All of the above.
Under barter exchange system, barter economy is termed as:
  1. C-C economy.
  2. C-M economy.
  3. C-G economy.
  4. Cash less economy.
Interest payments are subtracted from which deficit to arrive at Primary Deficit:
  1. Revenue Deficit.
  2. Capital Deficit.
  3. Fiscal Deficit.
  4. None of these.
Which of the following formula is correct for calculating Marginal Cost?

  1. $\text{MC}_\text{n}=\text{TFC}_\text{n}-\text{TFC}_{\text{n}-1}$

  2. $\text{MC}_\text{n}=\text{AC}_\text{n}-\text{AC}_{\text{n}-1}$

  3. $\text{MC}_\text{n}=\text{AUC}_\text{n}-\text{AVC}_{\text{n}-1}$

  4. $\text{MC}_\text{n}=\text{TC}_\text{n}-\text{TC}_{\text{n}-1}$