Question

5. Larger the stock of commodity, __________ is the MU. *



1 greater

2 lesser

3 equal

4 larger

​

Answer 1

Answer:

greater is the correct answer

Answer 2

The correct answer is option (1) Greater.

Explanation:

• The larger the stock of a commodity the higher is its marginal utility.
• Marginal utility is the added satisfaction a consumer gets from having one more unit of a good or service.
• The concept of marginal utility is used by economists to determine how much of an item consumers are willing to purchase.
• Marginal utility can be positive, zero, or negative.
• In economics, the standard rule is that marginal utility is equal to the total utility change divided by the change in amount of goods.
• The formula appears as follows: Marginal utility = total utility difference / quantity of goods difference.