To calculate marginal utility, divide the change in total utility by
A) the number of units consumed.
B) the price of the product.
C) the change in the number of units consumed.
D) the consumer's subjective level of preference.

Question

Quizplus · Accepted Answer

Marginal utility is the change in the total utility due to a one-unit change in the quantity of a product consumed. So, to calculate it, we need to divide the change in total utility by the change in the number of units consumed, which is represented by option C. Option A would give us average utility instead of marginal utility. Option B is irrelevant to the calculation of marginal utility. Option D is also not relevant to the calculation of marginal utility as it deals with subjective preference.

To Calculate Marginal Utility, Divide the Change in Total Utility