Assertion (A). Total utility will be maximum when marginal utility to price of respective products are equal.
Reason (R). Deviation from this situation leads to reduction in maximum utility.
| A. | (A) and (R) are not correct. |
| B. | (A) is correct but (R) is not correct. |
| C. | (A) and (R) are correct. |
| D. | (A) is incorrect (R) is correct. |
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Option: C Explanation : Click on Discuss to view users comments. |
| A. |
Substitution effect i.e. Relatively cheaper than related goods
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| B. |
Income effect i.e. Consumer becomes better off
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| C. | Both (a) & (b) |
| D. | None of these |
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Option: C Explanation : Click on Discuss to view users comments. |
| A. | Monopoly firm |
| B. | Oligopoly firm |
| C. | Perfectly competitive firm |
| D. | Duopoly firm |
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Option: B Explanation : Click on Discuss to view users comments. |
| A. | Only (i) is correct |
| B. | Only (ii) is correct |
| C. | Both incorrect |
| D. | Both correct |
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Option: D Explanation : Click on Discuss to view users comments. |
Assertion (A). Utility will be maximised when the marginal unit of expenditure in each direction brings the same increment of utility."
Reason (R). A consumer will try to maximise his utility.
| A. | Both (A) and (R) are true. |
| B. | Both (A) and (R) are false. |
| C. | (A) is true but (R) is false. |
| D. | (A) is false but (R) is true. |
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Option: A Explanation : Click on Discuss to view users comments. |
