Giving the disadvantages of bad currency, Groepe said, The quality of banknotes in circulation also poses a reputational risk for the central bank and in fact for the country. Central Banks meet in SA to improve currency security and cash management
When the marginal utility comes to zero or we say the point of satiety is reached, the total utility is the maximum. If consumption is increased further from this point of satiety, the marginal utility becomes negative and total utility begins to diminish. The relationship between total utility and marginal utility is now explained with the help of following schedule and a graph.
Assume the consumer utility function is defined by, where U is consumer utility, x and y are goods. Then the marginal rate of substitution can be computed via partial differentiation, as follows. Also, note that: where is the marginal utility with respect to good x and is the marginal utility with respect to good y.or example, if the MRS xy = 2, the consumer will give up 2 units of Y to obtain 1 additional unit of X. As one moves down a (standardly convex) indifference curve, the marginal rate of substitution decreases (as measured by the absolute value of the slope of the indifference curve, which decreases).