Kyle's utility function is U = 4X + 3.7Y, where X is units of good X and Y is units of good Y. What is the marginal utility of good X?
A) 4X + 3.7
B) 4
C) 0.3X
D) U/4

Question

Quizplus · Accepted Answer

The marginal utility of a good is the additional satisfaction (utility) a consumer gains from consuming one more unit of that good. It is calculated by taking the partial derivative of the utility function with respect to the good in question. For good X, the marginal utility is the derivative of U with respect to X, which is 4.

Kyle's Utility Function Is U = 4X + 3