The change in satisfaction derived when an individual consumes one more unit of a good or service is called
A) total utility.
B) marginal utility.
C) average utility.
D) fixed utility.

Question

Quizplus · Accepted Answer

Marginal utility is the change in satisfaction an individual derives from consuming one more unit of a good or service. Total utility is the overall satisfaction a person gets from consuming a certain amount of a good or service, and average utility is the average satisfaction derived from each unit consumed. Fixed utility is not a term used in economics.

The Change in Satisfaction Derived When an Individual Consumes One