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The marginal utility curve is best described as the:
Aheight of the budget line
Barea under the demand curve
Cslope of the total utility curve
Dsum of all total utilities
Answer & Solution
Correct answer: C. slope of the total utility curve
1. MU is the rate of change of total utility.
2. Geometrically this rate of change is the slope of the TU curve.
3. Consumer surplus relates to area under demand, and budget-line height is unrelated, so those options are wrong.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 2 Unit II "Theory of Consumer Behaviour", p.5_
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