Download App

Utility Analysis — Economics STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsEconomicsUtility Analysis4 Marks
Question
Marginal Utility diminishes.
✓

Answer

Yes, I agree with this statement.
  • Marginal utility diminishes with increase in consumption of a commodity.
  • When the stock of the commodity increases the intensity of want decreases so the utility diminishes.
  • There is an inverse relation between the stock of commodity and.MU.
  • The law of DMU states “The additional benefit which a person derives from a given increase in the stock of a
  • thing, diminishes with every increase in the stock that he already has.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "State with reason, whether you agree or disagree with the following statement" from Utility Analysis→Utility Analysis — all question types→Economics STD 12 Commerce / Arts question papers→Maharashtra Board STD 12 Commerce / Arts question papers→Maharashtra Board question paper generator→

Similar questions

Compared to advanced countries, the Indian money market is less developed.
→
When MU is zero, TU diminishes.
→
Various factors influence elasticity of demand.
→
Revenue receipts and revenue expenses are known as revenue budget.
→
National Income is an important tool to measure the overall performance of the economy.OR
The concept of National Income has an important place in Economic development.
→
Various factors influence the demand for a commodity.
→
India is importing only petroleum from other countries.
→
The services of housewife (unpaid services) is included in National Income.
→
The existence of Perfect Competition is an unrealistic concept. (Oct.’05)
→
Price is the only determinant of demand.OR
Price is the only factor that affects demand for a commodity.
→