Marginal utility is
A)always zero
B)increases at a diminishing rate
C)the utility derived from last unit
D)all the above

Question

Quizplus · Accepted Answer

Marginal utility refers to the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service. It is not always zero, does not necessarily increase at a diminishing rate (though it often does due to the law of diminishing marginal utility), and is specifically related to the utility derived from the consumption of the last unit.

Marginal Utility Is