If Allison's marginal utility of her 100th dollar of income is greater than Brad's marginal utility of his 10th dollar, then we can conclude:
A) money means more to Allison.
B) money means more to Brad.
C) Brad is richer than Allison.
D) nothing, since we can't make interpersonal utility comparisons.

Question

Quizplus · Accepted Answer

Marginal utility refers to the additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a good or service. The concept of marginal utility is subjective and varies from person to person, making it difficult to directly compare the utility levels of different individuals. Therefore, stating that one person's utility is greater than another's does not allow for a direct comparison of their well-being or financial status, as utility is inherently personal and subjective.

If Allison's Marginal Utility of Her 100th Dollar of Income