Question

Defend or refute the following statements: Write ‘yes’ or ‘no’ with reason:
a) MU of each unit of a commodity adds to total utility.
b) Total utility will increase even when marginal utility decreases.
c) Total utility is maximum when marginal utility starts declining.
d) All attainable combinations of good X and good Y are below the budget line of a consumer.
e) A situation when MRS > MRE is better than when MRS= MRE.​

Answer 1

1. Yes
2. No
3. No
4. Yes
5. ❌don't know SORRY❌