It is the marginal utility of the last unit consumed that determines how much a consumer is prepared to pay for a product.

Question

Quizplus · Accepted Answer

This statement is true according to the concept of marginal utility, which states that the satisfaction or benefit gained from consuming additional units of a product decreases as the quantity consumed increases. Therefore, consumers will only pay a certain amount for each additional unit consumed, based on the marginal utility gained from that unit.

It Is the Marginal Utility of the Last Unit Consumed