Fill in the blank with appropriate alternatives given below: When MU is ______________ TU decreases.

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KollegeApply · Accepted Answer

When MU is negative, TU decreases. Explanation: Total Utility TU depends upon the Marginal Utility MU . Marginal utility depicts the addition to total utility when an additional unit of the commodity is consumed. A negative marginal utlity suggests that additional to total utility is negative. Thus, total utility is falling.

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