An additive utility function has the property that the marginal utility of one extra unit of any good consumed is independent of the amount of other goods consumed.

Question

Quizplus · Accepted Answer

In an additive utility function, the marginal utility of one extra unit of any good consumed is independent of the amount of other goods consumed, which is the definition of "additive". Therefore, the statement is true.

An Additive Utility Function Has the Property That the Marginal