Marginal utility is
A)always increasing.
B)maximized when total utility is zero.
C)the slope of the total utility function.
D)always decreasing.

Question

Quizplus · Accepted Answer

Marginal utility is the additional utility gained from consuming one additional unit of a good. It is measured as the slope of the total utility function, so the correct choice is C. Marginal utility can be increasing, decreasing, or constant depending on the level of consumption and preferences of the individual, so choices A and D are incorrect. Choice B does not make sense, as total utility cannot be zero. Marginal utility is the additional satisfaction gained from consuming one more unit of a good or service. It is measured by the slope of the total utility function, which can be positive, negative or zero depending on the level of consumption. Therefore, choice C is the correct answer. Choices A and D are incorrect, as marginal utility can increase or decrease depending on the level of consumption. Choice B is also incorrect, as marginal utility can still be positive even when total utility is zero.

Marginal Utility Is