Question

Ino.3 Distinguish between
1. Utility and Usefulness
2. Total utility and Marginal Utility
3. Value in use and value in exchange
Lno. 4 Answer in brief
1. Explain the types of utility
2. Explain the features of the utility
3. Explain the relationship of MU and price
(no.5 Answer the following in detail
1. Explain the law of DMU with its exceptions
2. Explain the importance of law of DMU​

Answer 1

Explanation:

Ino.3 Distinguish between

1. Utility and Usefulness

2. Total utility and Marginal Utility

3. Value in use and value in exchange

Lno. 4 Answer in brief

1. Explain the types of utility

2. Explain the features of the utility

3. Explain the relationship of MU and price

(no.5 Answer the following in detail

1. Explain the law of DMU with its exceptions

2. Explain the importance of law of DMU

Answer 2

Explanation:

1. When used as nouns, usefulness means the quality or degree of being useful, whereas utility means the state or condition of being useful. Utility is also adjective with the meaning: having to do with, or owned by, a service provider. Usefulness as a noun: The quality or degree of being useful

2. Total Utility means overall benefit obtained by a person from consumption of goods and services. Marginal Utility means the amount of utility a person gets from the consumption of each successive unit of a commodity. In general, the total utility increases as more of a commodity is consumed.

3. Value means the utility of a commodity. However, in economics, the term ‘value’ has a quite different meaning.

According to Adam Smith, the word value can be used in two senses, i.e., value-in-use and value-in-exchange.