What happen to MU when TU is maximum and constant?
Answers
Answered by
1
Answer. When a consumer goes on to consume the units of a commodity continuously the marginal utility derived from the successive units of the commodity goes on to fall constantly while other factors are held constant.
Answered by
0
Mu becomes zero.
- The term MU stands for marginal utility, while TU stands for total utility. e rate of change in TU is denoted by MU.
- TU is the total satisfaction obtained from the consumption of a commodity's sum of quantities, whereas Marginal implies over and above the total by additional quantity.
- Both increase at first, but at a point where consumption reaches equilibrium, marginal becomes zero and total becomes maximum and constant. The marginal becomes negative, and the sum starts to fall.
Similar questions