Question : Assertion: The concept of marginal utility is only applicable in the case of discrete goods.
Reason: Marginal utility measures the additional satisfaction obtained from consuming an additional unit of a good.
Option 1: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Option 2: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.
Option 3: The assertion is true, but the reason is false.
Option 4: The assertion is false, but the reason is true.
Correct Answer: The assertion is false, but the reason is true.
Solution : The correct option is (d) Option D The assertion is false, but the reason is true.
The concept of marginal utility is not limited to only discrete goods. Marginal utility measures the additional satisfaction or utility obtained from consuming an additional unit of a good or service. It applies to both discrete goods, which are countable and measurable in units, as well as continuous goods, which are not countable or measurable in units.
For both discrete and continuous goods, the concept of marginal utility helps explain how the satisfaction or utility derived from consuming each additional unit changes. It provides insights into consumer behavior, decision-making, and demand.
