Match the following. List-I (Concepts) List-II (Features) a. Utility 1. MU tends to decline as consumption of the commodity increases b. Total utility 2. It is a want satisfying power of a good c. Marginal utility 3. Sum total of utility derived from the consumption of all the units of a commodity d. Law of diminishing marginal utility 4. Additional utility an account of the consumption of an additional unit of a commodity

The correct answer is: D. a-1, b-2, c-3, d-4.

• Utility is the satisfaction or benefit that a consumer derives from consuming a good or service.
• Total utility is the sum total of utility derived from the consumption of all units of a commodity.
• Marginal utility is the additional utility derived from the consumption of an additional unit of a commodity.
• The law of diminishing marginal utility states that as a consumer consumes more and more of a good, the marginal utility of that good will eventually decline.

Here is a more detailed explanation of each concept:

• Utility: Utility is the satisfaction or benefit that a consumer derives from consuming a good or service. It is a subjective measure that can vary from person to person. For example, one person may derive a lot of utility from eating a piece of chocolate cake, while another person may derive very little utility from it.
• Total utility: Total utility is the sum total of utility derived from the consumption of all units of a commodity. It is calculated by adding up the marginal utilities of each unit consumed. For example, if a consumer derives 10 units of utility from the first unit of a good, 5 units of utility from the second unit, and 2 units of utility from the third unit, then their total utility from consuming three units of the good is 17 units.
• Marginal utility: Marginal utility is the additional utility derived from the consumption of an additional unit of a commodity. It is calculated by taking the difference between the total utility before and after consuming an additional unit. For example, if a consumer derives 10 units of utility from the first unit of a good, 5 units of utility from the second unit, and 2 units of utility from the third unit, then their marginal utility from the second unit is 5 units and their marginal utility from the third unit is 2 units.
• Law of diminishing marginal utility: The law of diminishing marginal utility states that as a consumer consumes more and more of a good, the marginal utility of that good will eventually decline. This is because the consumer will get less and less satisfaction from each additional unit consumed. For example, if a consumer derives 10 units of utility from the first unit of a good, 5 units of utility from the second unit, and 2 units of utility from the third unit, then their marginal utility from the second unit is 5 units and their marginal utility from the third unit is 2 units. The marginal utility of the third unit is less than the marginal utility of the second unit because the consumer is getting less satisfaction from each additional unit consumed.

I hope this explanation is helpful!