Assertion (A): Utility will be maximized when the marginal units of expenditure in each direction bring the same increment of utility.
Reason (R): A consumer will try to maximize his utility.

Assertion (A): Utility will be maximized when the marginal units of expenditure in each direction bring the same increment of utility.
Reason (R): A consumer will try to maximize his utility. Correct Answer Both (A) and (R) are true

Bissoy MCQ

Related Questions

Which of the following are not the assumptions related to the theory of consumer behaviour as per the cardinal utility approach?
1. Rational consumer
2. Unlimited money income
3. Utility cardinally measurable
4. Diminishing marginal utility of money
5. Constant marginal utility of commodities
6. Maximisation of satisfaction
7. Utility is additive
An operating system uses the Banker’s algorithm for deadlock avoidance when managing the allocation of three resource types X, Y, and Z to three processes P0, P1, and P2. The table given below presents the current system state. Here, the Allocation matrix shows the current number of resources of each type allocated to each process and the Max matrix shows the maximum number of resources of each type required by each process during its execution.   Allocation Max   X Y Z X Y Z P0 0 0 1 8 4 3 P1 3 2 0 6 2 0 P2 2 1 1 3 3 3   There are 3 units of type X, 2 units of type Y and 2 units of type Z still available. The system is currently in a safe state. Consider the following independent requests for additional resources in the current state: REQ1: P0 requests 0 units of X, 0 units of Y and 2 units of Z REQ2: P1 requests 2 units of X, 0 units of Y and 0 units of Z Which one of the following is TRUE?
The pie chart given below shows the expenditure of a family on six different articles A, B, C, D, E and F in a month. Total expenditure on all these six articles is Rs. 42000. Expenditure on a particular article is shown as a percent of total expenditure on all these six articles. Which of the following statement(s) is/are correct? I. Expenditure on article C is Rs. 5560 more than the expenditure on article A. Il. Ratio of expenditure on article A to the expenditure on article D is 5: 4 respectively.
When labour is plotted on X-axis and capital is plotted on Y-axis and an iso-quant is prepared, then which of the following statements is/are false ? (a) Marginal rate of technical substitution of labour for capital is equal to the slope of the iso-quant. (b) Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of labour. (c) Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of labour.
When labour is plotted on X-axis and capital is plotted on Y-axis and an isoquant is prepared, then which of the following statement(s) is/arefalse?
1. Marginal rate of technical substitution of labour for capital is equal to the slope of the iso-quant.
2. Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of labour.
3. Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of labour.
Suppose that there are two goods, X and Y, facing a consumer. The prices are Px = Rs. 4 and Py = Rs. 5. He has Rs. 110 to spend on these goods. Suppose, he is currently buying 15 units of good X (with marginal utility equal to 40) and 10 units of good Y (with marginal utility equal to 45).
In the above context, which one of the following statements is correct?
The rate of electricity in the rural area is given below: i) up to 25 units - Rs 5 per unit ii) up to 75 units - Rs 7 per units iii) up to 100 units - Rs 9 per units iv) After 100 units - Rs 13 per units Additional charge after 100 units = Rs. 50 The consumption of the electricity of the household is 120 units. How much electricity bill he has to pay?
On which of the following assumptions, the theory of consumer behaviour on cardinal utility approach is NOT based?  1. Consumer is rational 2. Limited money income of the consumer 3. Maximization of total satisfaction 4. Diminishing marginal utility of money 
An assertion and a reason are given below. Assertion: The phenomenon of nuclear fission generates great energy. Reason: The process in which a nucleus is broken into two parts is called nuclear fission. Choose the answer. A. Both Assertion and Reason are true and Reason is the correct explanation of Assertion. B. Both Assertion and Reason are true but Reason is not the correct explanation of Assertion. C. Both Assertion and Reason are false. D. Assertion is true but Reason is false.
Raw material purchased:
1st January, 600 units @ Rs. 12 per unit
12th January, 500 units @ Rs. 14 per unit
21st January, 300 units @ Rs. 13 per unit
Raw material issued for manufacture:
3rd January 300 units
5th January 124 units
15th January 250 units
16th January 300 units
Raw material returned to stores from manufacturing department on 14th January, 50 units. The material is issued on First-in-First out method.
The value of material remaining in store on 21st January will be: