{"id":84876,"date":"2025-06-01T02:54:04","date_gmt":"2025-06-01T02:54:04","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=84876"},"modified":"2025-06-01T02:54:04","modified_gmt":"2025-06-01T02:54:04","slug":"which-one-of-the-following-statements-is-not-correct-12","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-12\/","title":{"rendered":"Which one of the following statements is not correct?"},"content":{"rendered":"

Which one of the following statements is not correct?<\/p>\n

[amp_mcq option1=”When total utility is maximum, marginal utility is zero.” option2=”When total utility is decreasing, marginal utility is negative.” option3=”When total utility is increasing, marginal utility is positive.” option4=”When total utility is maximum, marginal and average utility are equal to each other.” correct=”option4″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CDS-1 – 2019<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nThe relationship between Total Utility (TU) and Marginal Utility (MU) is as follows:
\n– When TU is increasing, MU is positive.
\n– When TU reaches its maximum point, MU is zero (the consumer gets no additional satisfaction from the last unit consumed).
\n– When TU starts decreasing, MU becomes negative (the consumer experiences dissatisfaction from the last unit).
\nAverage Utility (AU) is calculated as Total Utility divided by the number of units consumed (TU\/Q). While MU is zero when TU is maximum, AU is generally positive at that point unless TU itself is zero (which is not the case when it’s at its maximum positive value). There is no principle in utility theory stating that marginal and average utility are equal when total utility is maximum.
\n<\/section>\n
\nUnderstanding the relationship between Total Utility, Marginal Utility, and Average Utility is fundamental in consumer behaviour theory in economics.
\n<\/section>\n
\nThe point where MU = 0 is the point of ‘satiety’. Beyond this point, consuming more units reduces total utility. AU is maximized when MU equals AU, but this point typically occurs *before* TU is maximized.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Which one of the following statements is not correct? [amp_mcq option1=”When total utility is maximum, marginal utility is zero.” option2=”When total utility is decreasing, marginal utility is negative.” option3=”When total utility is increasing, marginal utility is positive.” option4=”When total utility is maximum, marginal and average utility are equal to each other.” correct=”option4″] This question was … <\/p>\n

Detailed SolutionWhich one of the following statements is not correct?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1087],"tags":[1119,1120,1261],"class_list":["post-84876","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-1","tag-1119","tag-economic-development","tag-nature-of-indian-economy","no-featured-image-padding"],"yoast_head":"\nWhich one of the following statements is not correct?<\/title>\n<meta name=\"description\" content=\"The relationship between Total Utility (TU) and Marginal Utility (MU) is as follows: - When TU is increasing, MU is positive. - When TU reaches its maximum point, MU is zero (the consumer gets no additional satisfaction from the last unit consumed). - When TU starts decreasing, MU becomes negative (the consumer experiences dissatisfaction from the last unit). Average Utility (AU) is calculated as Total Utility divided by the number of units consumed (TU\/Q). While MU is zero when TU is maximum, AU is generally positive at that point unless TU itself is zero (which is not the case when it's at its maximum positive value). There is no principle in utility theory stating that marginal and average utility are equal when total utility is maximum. Understanding the relationship between Total Utility, Marginal Utility, and Average Utility is fundamental in consumer behaviour theory in economics.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-12\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which one of the following statements is not correct?\" \/>\n<meta property=\"og:description\" content=\"The relationship between Total Utility (TU) and Marginal Utility (MU) is as follows: - When TU is increasing, MU is positive. - When TU reaches its maximum point, MU is zero (the consumer gets no additional satisfaction from the last unit consumed). - When TU starts decreasing, MU becomes negative (the consumer experiences dissatisfaction from the last unit). Average Utility (AU) is calculated as Total Utility divided by the number of units consumed (TU\/Q). While MU is zero when TU is maximum, AU is generally positive at that point unless TU itself is zero (which is not the case when it's at its maximum positive value). There is no principle in utility theory stating that marginal and average utility are equal when total utility is maximum. Understanding the relationship between Total Utility, Marginal Utility, and Average Utility is fundamental in consumer behaviour theory in economics.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-12\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T02:54:04+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Which one of the following statements is not correct?","description":"The relationship between Total Utility (TU) and Marginal Utility (MU) is as follows: - When TU is increasing, MU is positive. - When TU reaches its maximum point, MU is zero (the consumer gets no additional satisfaction from the last unit consumed). - When TU starts decreasing, MU becomes negative (the consumer experiences dissatisfaction from the last unit). Average Utility (AU) is calculated as Total Utility divided by the number of units consumed (TU\/Q). While MU is zero when TU is maximum, AU is generally positive at that point unless TU itself is zero (which is not the case when it's at its maximum positive value). There is no principle in utility theory stating that marginal and average utility are equal when total utility is maximum. Understanding the relationship between Total Utility, Marginal Utility, and Average Utility is fundamental in consumer behaviour theory in economics.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-12\/","og_locale":"en_US","og_type":"article","og_title":"Which one of the following statements is not correct?","og_description":"The relationship between Total Utility (TU) and Marginal Utility (MU) is as follows: - When TU is increasing, MU is positive. - When TU reaches its maximum point, MU is zero (the consumer gets no additional satisfaction from the last unit consumed). - When TU starts decreasing, MU becomes negative (the consumer experiences dissatisfaction from the last unit). Average Utility (AU) is calculated as Total Utility divided by the number of units consumed (TU\/Q). While MU is zero when TU is maximum, AU is generally positive at that point unless TU itself is zero (which is not the case when it's at its maximum positive value). There is no principle in utility theory stating that marginal and average utility are equal when total utility is maximum. Understanding the relationship between Total Utility, Marginal Utility, and Average Utility is fundamental in consumer behaviour theory in economics.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-12\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T02:54:04+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-12\/","url":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-12\/","name":"Which one of the following statements is not correct?","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T02:54:04+00:00","dateModified":"2025-06-01T02:54:04+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The relationship between Total Utility (TU) and Marginal Utility (MU) is as follows: - When TU is increasing, MU is positive. - When TU reaches its maximum point, MU is zero (the consumer gets no additional satisfaction from the last unit consumed). - When TU starts decreasing, MU becomes negative (the consumer experiences dissatisfaction from the last unit). 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