Marginal utility:
A)is the ratio of total utility to total consumption.
B)is the rate at which total utility changes as the level of consumption rises.
C)will always be equal to the product's price.
D)tells us nothing; we're only concerned with total utility.

Question

Quizplus · Accepted Answer

Marginal utility is the change in total utility when one more unit of a product is consumed. It is the additional satisfaction gained from consuming an extra unit of a good, and it decreases as more units are consumed. Therefore, it is the rate at which total utility changes as the level of consumption rises. Marginal utility is the rate at which total utility changes as the level of consumption rises. It measures the additional utility (or satisfaction) that a consumer derives from consuming one additional unit of a good or service. Marginal utility can be positive, negative, or zero, and it diminishes as consumption of the good or service increases.

Marginal Utility