Marginal utility is NOT
A) measured in utils.
B) a measure of satisfaction.
C) the same for all units of a commodity consumed.
D) used to explain how consumers make decisions.

Question

Quizplus · Accepted Answer

Marginal utility refers to the additional satisfaction a consumer gets from consuming one more unit of a good or service. It is not constant for all units consumed due to the law of diminishing marginal utility, which states that as a person consumes more units of a good, the satisfaction gained from consuming each additional unit decreases.

Marginal Utility Is NOT