The change in the total utility as a result of increasing consumption by one unit is known as
A) marginal utility.
B) average utility.
C) proportional utility.
D) utils.

Question

Quizplus · Accepted Answer

The concept of marginal utility refers to the additional satisfaction or usefulness that a consumer derives from consuming an additional unit of a good or service. It is the change in the total utility resulting from an increase in the consumption of one more unit. Therefore, option A is the correct choice. Option B, average utility, refers to the total utility divided by the quantity consumed, and it does not capture the change resulting from one additional unit. Option C is not a relevant term in the context of utility theory. Option D, utils, is a unit of measurement used to quantify the level of utility, but it does not refer to the change resulting from one additional unit.

The Change in the Total Utility as a Result of Increasing