Download App

Utility Analysis — Economics STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsEconomicsUtility Analysis2 Marks
Question
Total Utility and Marginal Utility.
✓

Answer

Total Utility :
    1. Total utility is the sum total of utilities derived from the consumption of all units in a given stock of a commodity.
    2. TU =Σ MU
    3. TU increases but at a diminishing rate.
    4. At point of satiety TU is maximum.
    5. After point of satiety TU starts diminishing.
    6. Numerical value of TU is always positive.
    7. TU indicates value-in-use.
    8. When TU is maximum, the MU is zero.
Image
  1. Marginal utility is the additional utility derived from consuming additional unit of a commodity.
  2. $MU_n = TU_n – TU_{n-1}$
  3. MU continuously diminishes.
  4. At point of satiety MU is zero.
  5. After point of satiety MU becomes negative.
  6. Numerical value of MU can be positive, negative or zero.
  7. MU indicates value-in-exchange.
  8. When the MU is maximum the TU is minimum.
    Image

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 "Distinguish between" 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

Trade surplus and Trade deficit.
→
Joint Demand and Composite Demand.
→
Variation in Demand and Chañges in Di
→
Direct Demand and Derived Demand / Indirect Demand
→
Tax revenue and Non-tax revenue.
→
Increase in Supply and Decrease in Supply.
→
Individual Supply Curve and Market Supply Curve
→
Output and Supply
→
Contraction of Demand and Decrease in Demand
→
Variation in supply and Changes in Supply.
→