Utility Function

To determine which statements are correct, let's evaluate each one:

• (A) Marginal Utility is the change in Total Utility due to consumption of one additional unit of commodity. Marginal Utility (MU) is indeed the additional satisfaction obtained from consuming one more unit of a good or service. This statement is correct.
• (B) Two Indifference Curves intersect each other. Indifference curves represent different levels of satisfaction. If two were to intersect, it would imply inconsistent preferences, which contradicts consumer theory. Thus, this statement is incorrect.
• (C) Marginal Utility becomes Zero at a level when Total Utility remains constant. When MU is zero, Total Utility (TU) has reached its maximum and remains constant at this point. Therefore, this statement is correct.
• (D) Diminishing Marginal Rate of Substitution does not affect Indifference Curve. The Diminishing Marginal Rate of Substitution (MRS) influences the curvature of the indifference curve, as it governs the rate at which a consumer substitutes one good for another. Thus, this statement is incorrect.
• (E) Indifference Curve slopes downwards from left to right. Indifference curves generally slope downwards from left to right, indicating that to maintain the same level of utility, an increase in one good requires a decrease in another. This statement is correct.

Given the evaluation, the correct statements are (A), (C), and (E). Thus, the correct option is: (A), (C) and (E) only