Which of the following is true about marginal utility?
A) Marginal utility is total utility divided by the total quantity consumed.
B) Marginal utility is the change in total utility divided by the change in total quantity demanded.
C) Marginal utility is the satisfaction that a consumer experiences from all the units of a good or service consumed.
D) None of the above are true.

Question

Quizplus · Accepted Answer

Marginal utility is the additional satisfaction or utility gained from consuming an extra unit of a good or service. It can be calculated as the change in total utility divided by the change in quantity demanded. Option A is incorrect as total utility is not divided by total quantity consumed to calculate marginal utility. Option C is incorrect as marginal utility refers to the satisfaction from an additional unit consumed, not all the units consumed. Option D is incorrect as option B is true.

Which of the Following Is True About Marginal Utility