Utility - DMU

How are you feeling today?

• 😁

• 😐

• 😴

• 😕

When we add up utility derived from consumption of all the units of the commodities, we get?

• Total Utility

• Marginal Utility

• Initial Utility

• None of these

What does negative marginal utility indicate?

• Dissatisfaction

• Satisfaction

Can marginal utility be Zero?

• Yes

• No

When total utility derived by a consumer for one mango is 20 utils and total utility for two mangoes is 15 utils, marginal utility is equal to ___

• 5

• 10

• 15

• 20

Marginal utility

• is always positive

• is always negative

• can be positive, negative but not zero

• can be positive, negative or zero

Which law states that when a consumer consumers more and more units of a product, the utility derived from each additional unit decreases?

• Law of cardinal utility

• Law of ordinal utility

• Law of Diminishing Marginal Utility

• Law of Equi-marginal utility

When marginal utility is zero, total utility is

• Zero

• Negative

• Minimum

• Maximum

When consumption of a commodity increases, the marginal utility _____

• Decreases

• Constant

• Increases

• None of the above

The picture to your right, where the preference is stated is ordinal utility.

• True

• False