If we use a logarithmic utility function, the marginal utility of consumption is:
A) equal to c
B) equal to $c ^ { a }$
C) equal to $a c ^ { a - 1 }$
D) one
E) (1/c)

Question

Quizplus · Accepted Answer

The marginal utility of consumption for a logarithmic utility function $U(c) = \log(c)$ is the derivative of the utility function with respect to consumption, which is $1/c$.

If We Use a Logarithmic Utility Function, the Marginal Utility cac ^ { a }ca

If We Use a Logarithmic Utility Function, the Marginal Utility $c ^ { a }$