The marginal utility from consuming a good, service, or activity is the:
A) total satisfaction from consuming a certain amount of that item.
B) change in total satisfaction from consuming each additional unit of that item.
C) total satisfaction minus the opportunity cost from consuming a certain amount of that item.
D) total satisfaction from consuming a certain amount of that item divided by the number of units of the item consumed.

Question

Quizplus · Accepted Answer

Marginal utility refers to the change in total satisfaction or utility that a consumer experiences as a result of consuming one additional unit of a good, service, or activity. It is not about the total satisfaction (A), nor does it directly factor in opportunity cost (C) or involve dividing total satisfaction by the number of units consumed (D).

The Marginal Utility from Consuming a Good, Service, or Activity