Marginal utility is:
A)the slope of the total utility function.
B)the slope of a ray from the origin to the total utility function.
C)always less than average utility.
D)always greater than average utility.

Question

Quizplus · Accepted Answer

Marginal utility is the additional satisfaction gained from consuming one more unit of a good or service. It is represented by the slope of the total utility function, which shows the total satisfaction gained from consuming a certain quantity of a good or service. Therefore, choice A is the correct answer. Choices B, C, and D do not accurately describe marginal utility. Marginal utility is the additional utility gained from consuming one more unit of a good. Therefore, it is calculated by taking the derivative of the total utility function, making it the slope of the total utility function. Options B, C, and D are incorrect statements.

Marginal Utility Is