Model Paper 3 — Economics STD 11 Commerce — Question

Quantity (in units)	MU (Utils)	TU (Utils)
1	8	8
2	5	13
3	3	16
4	1	17
5	0	17
6	-1	16

Relationship between total utility and Marginal Utility
• Marginal utility falls but remains positive as long as total utility increases from 1^st unit to 4^th unit of consumption.
• When marginal utility is Zero, total utility is maximum i.e. at 5^th unit of consumption.
• When marginal utility becomes negative, total utility starts falling but remains positive i.e. at 6^th unit of consumption and beyond.