explain the relationship between TU and MU use diagram
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Answer:
her is your answer
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Explanation:
TU increases with an increase in consumption of a commodity as long as MU is positive. In this phase, TU increases but a diminishing rate as MU from each successive unit tends to diminish. ... When consumption is increased beyond the point of satiety, TU starts falling as MU becomes negative. .....
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Answered by
0
Answer:
Hope the photo is clear for you... TU is the total satisfaction derived from a commodity while MU is the change in the TU due to consumption of additional unit of commodity. The attached diagram shows that on increase in units of consumption MU decreases while TU increases.
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