what would be the impact, if marginal utility curve lies below x-axis?
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3
Explanation:
When marginal utility curve remain above X axis , total utility increases.
When marginal utility curve lies below x-axis, total utility curve slopes downward.
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2
Answer:
What changes will take place in TU, when (i) MU curve remains above the X-axis, (ii) MU curve touches the X-axis, (iii) MU curve lies below the X-axis. Solution : (i) TU will increase, but a diminishing rate, (ii) TU will be maximum, (iii) TU starts to fall.
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