Marginal utility is defined as
A) the increase in utility divided by the total number of units consumed.
B) the total utility divided by the total number of units consumed.
C) the change in total utility divided by the change in number of units consumed.
D) the number of units consumed divided by the total utility.

Question

Quizplus · Accepted Answer

Marginal utility refers to the change in total utility that is obtained from consuming an additional unit of a good or service. Therefore, option C, which defines marginal utility as the change in total utility divided by the change in the number of units consumed, is the correct choice. Options A and D are incorrect as they do not take into account the change in utility, while option B is incorrect as it does not consider the number of units consumed.

Marginal Utility Is Defined as