The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-In order to have a meaningful measure of marginal utility, we must define the time period during which consumption is occurring.

Question

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3
 
-In order to have a meaningful measure of marginal utility, we must define the time period during which consumption is occurring.

Quizplus · Accepted Answer

Marginal utility refers to the additional satisfaction or utility that a consumer receives from consuming an additional unit of a good or service. To accurately measure this change in satisfaction, it's essential to specify the time period over which the consumption takes place, as utility can vary significantly with time due to factors like changing preferences, diminishing returns, and the context of consumption.

The Below Figure Shows the Various Combinations of the Goods