Practicing Success
Practicing Success
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| Given below are two statements: Statement 1: Total utility can be negative. Statement 2: Marginal utility is zero when total utility is maximum and constant. Which statement/s are correct? |
Both the statements are true. Both the statements are false. Statement 1 is true and Statement 2 is false Statement 2 is true and Statement 1 is false |
| Statement 2 is true and Statement 1 is false |
| Total utility is the sum total of all marginal utilities derived from consumption of each successive unit of a commodity. When marginal utility becomes negative, then the addition to total utility will be negative and the total utility can diminish but it can never be negative. |
