Use the following for questions 23-27.
Exhibit: Total Utility and Marginal Utility from Consumption of Good A

-(Exhibit: Total Utility and Marginal Utility from Consumption of Good A. Marginal utility of good A is found by:
A) dividing total utility by the number of units consumed of good A.
B) dividing the change in the number of units of A by the change in total utility of A.
C) computing the change in total utility of A resulting from the consumption of one more unit of A.
D) doing none of the above.

Question

Use the following for questions 23-27.
Exhibit: Total Utility and Marginal Utility from Consumption of Good A
 
-(Exhibit: Total Utility and Marginal Utility from Consumption of Good A. Marginal utility of good A is found by:
A) dividing total utility by the number of units consumed of good A. 
B) dividing the change in the number of units of A by the change in total utility of A. 
C) computing the change in total utility of A resulting from the consumption of one more unit of A. 
D) doing none of the above.

Quizplus · Accepted Answer

Marginal utility is the change in total utility resulting from the consumption of one more unit of the good. Therefore, option C is the correct choice. Option A is incorrect because it divides total utility by the number of units consumed, but it does not consider the change resulting from the consumption of an additional unit. Option B is incorrect because it divides the change in the number of units by the change in total utility, which may not necessarily result in the correct marginal utility value. Option D is incorrect because it does not provide any alternative method for computing marginal utility.

Use the Following for Questions 23-27