Which of the following statements is correct?
A) Marginal utility is the cumulation or summation of total utility.
B) Total utility is the cumulation or summation of marginal utility.
C) Total utility is the product of multiplying price times marginal utility.
D) Total utility is the change in marginal utility as quantity consumed increases.

Question

Quizplus · Accepted Answer

Total utility is the cumulation or summation of marginal utility. Marginal utility refers to the additional utility obtained from consuming an additional unit of a good or service, and total utility is the sum of all the marginal utilities obtained from consuming all units of the good or service.

Which of the Following Statements Is Correct