The concept of marginal utility:
A)explains why individuals find it difficult to maximize their total utility.
B)is the change in total utility that comes from consuming one additional unit of a good or service.
C)can only be applied to situations in which individuals can choose among several goods or services.
D)All of these are true.

Question

Quizplus · Accepted Answer

Marginal utility is defined as the change in total utility that comes from consuming one additional unit of a good or service. It helps individuals make decisions about how much of a good or service to consume, based on the additional satisfaction they will receive from each additional unit. The concept of marginal utility applies to all situations in which individuals can choose among goods or services, and can be used to help them maximize their total utility.

The Concept of Marginal Utility