Marginal utility
A) at first rises and then declines as a person consumes more of a good or service.
B) can be thought of as being the equivalent to total utility.
C) equals the total satisfaction from consumption of goods and services.
D) is stable, but then as a person consumes more of a good or service, has a propensity to increase.

Question

Quizplus · Accepted Answer

Marginal utility refers to the additional satisfaction or benefit that a consumer derives from consuming an additional unit of a good or service. At first, as a person consumes more of a good or service, the marginal utility tends to increase. However, as the person continues to consume more, the marginal utility starts to decline, indicating that the consumer is becoming less satisfied or enjoying less benefit from each additional unit consumed. Therefore, option A is the correct answer.

Marginal Utility