The amount of added utility that an individual derives from consuming one more unit of a good or service is called:
A) total utility.
B) marginal utility.
C) average utility.
D) diminishing utility.

Question

Quizplus · Accepted Answer

Marginal utility is the amount of additional satisfaction or utility that an individual derives from consuming one more unit of a good or service. Total utility is the overall satisfaction that an individual derives from consuming all units of a good or service. Average utility is the total utility divided by the number of units consumed. Diminishing utility is the decrease in marginal utility as consumption of a good or service increases.

The Amount of Added Utility That an Individual Derives from Consuming