Advertisement

State the following statements are True or False: 5. Negative MU denotes more satisfaction.

State the following statements are True or False:
5. Negative MU denotes more satisfaction.
ANSWER:
5) Negative MU denotes more satisfaction. - False
Explanation:
The above statement is false. In fact, negative marginal utility denotes dissatisfaction. Negative marginal utility implies that the additional unit decreases the total utility derived from the consumption of the commodity.