Marginal utility is the
A)Change in total utility obtained by spending one extra dollar on a good or service.
B)Change in total utility obtained by consuming one extra unit of a good or service.
C)Change in total utility obtained by selling one extra unit of a good or service.
D)Utility received from consuming the optimal combination of goods and services.

Question

Quizplus · Accepted Answer

Marginal utility refers to the change in total utility obtained by consuming one extra unit of a good or service. Therefore, option B is the correct answer. Option A refers to marginal utility of money, which is different from marginal utility. Option C refers to revenue, which is not related to utility. Option D refers to optimal consumption, which is not the same as marginal utility.

Marginal Utility Is the