If total utility increases from 10 to 15 for the second unit of a good consumed, the marginal utility of the second unit is 5.

Question

Quizplus · Accepted Answer

Marginal utility is the additional utility gained from consuming one more unit of a good. In this case, the total utility increased by 5 when consuming the second unit, which means the marginal utility of the second unit is 5. Therefore, the statement is true.

If Total Utility Increases from 10 to 15 for the Second