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Which one of the following statements is not correct?

Correct Answer: When total utility is maximum,marginal and average utility are equal to each other.

Explanation:

Total utility -It is total psychological satisfaction which a consumer derives from the consumption of a commodity is known as total utility


Marginal utility -It is anaddition made in total utility by consuming and additional unit of a commodity is known as marginal utility.


•When marginal utility is positive,total utility increases


•When marginal utility is zero,total utility is at maximum


•When marginal utility is negative,total utility decreases


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