The additional utility or satisfaction that one derives from consuming one more unit of any good or service is referred to as
A) total utility.
B) diminishing utility.
C) average utility.
D) marginal utility.

Question

Quizplus · Accepted Answer

Marginal utility measures the additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service. Total utility refers to the overall satisfaction or utility gained from consuming all units of a good or service. Diminishing utility states that as an individual consumes more of a good or service, the marginal utility of each additional unit decreases. Average utility refers to the total utility divided by the number of units consumed.

The Additional Utility or Satisfaction That One Derives from Consuming