ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Answer and Explanation: If marginal utility is positive, consuming an additional unit of a product will cause total utility to decline. The statement is TRUE.

Detailed explanation-2: -The law of diminishing marginal utility states that all else equal, as consumption increases, the marginal utility derived from each additional unit declines.

Detailed explanation-3: -Positive marginal utility occurs when the consumption of an additional item increases the total utility. On the other hand, negative marginal utility occurs when the consumption of one more unit decreases the overall utility.

Detailed explanation-4: -As total utility increases, marginal utility would still be positive. But, marginal utility could be increasing or decreasing. Once, marginal utility is negative, total utility will begin to reduce.

Detailed explanation-5: -The law says, first, that the marginal utility of each homogeneous unit decreases as the supply of units increases (and vice versa); second, that the marginal utility of a larger-sized unit is greater than the marginal utility of a smaller-sized unit (and vice versa).