Marginal utility is
A) the utility obtained from the consumption of all but the last unit of a good.
B) the relative value of two goods when a utility-maximizing decision has been made.
C) the change in utility that results from increasing the amount of a good consumed by one unit.
D) the change in the amount of a good consumed that increases total utility by one unit.
E) none of the above

Question

Quizplus · Accepted Answer

Marginal utility is the change in utility that results from increasing the amount of a good consumed by one unit. It helps in determining the optimal level of consumption of a good as it measures how much utility is gained from consuming one additional unit of the good.

Marginal Utility Is