The marginal utility of a unit of good Y to Jane is
A)the additional utility that Jane gets from consuming one more unit of Y.
B)defined in money terms as the minimum amount Jane is willing to pay for that additional unit of Y.
C)defined in money terms as the maximum amount Jane is willing to pay for all the Y she buys except that additional unit.
D)All of the responses are correct.

Question

Quizplus · Accepted Answer

Marginal utility refers to the additional satisfaction that a consumer gets from consuming one more unit of a good. Therefore, the correct choice is A. B and C refer to the concept of willingness to pay, which is different from marginal utility. D is not a correct answer as option B and C are incorrect.

The Marginal Utility of a Unit of Good Y to Jane