Question

1. Which of the following statements regarding utility is not

true?

(i) It is a satisfying power of a commodity

(ii) It is purely a subjective entity

(iii) Utility is always measurable

(iv) It helps consumers to make choices​

Answer 1

Answer:

(iii) Is the ANSWER......

Answer 2

(iii) Utility is always measurable is not true.

• The desire to fulfill the capacity and strength of a commodity is called utility.
• It is a degree of satisfaction associated with any task of commerce.
• The law of diminishing marginal utility states that when Total Utility is at its maximum the Marginal Utility is zero.
• The point where MU=0 is called the point of satiety.
• A convex indifference curve is formed by a declining marginal rate of substitution.