Question

Define marginal utility?

• A. Is the utility derived from the consumption of an addtional unit of a commodity
• B. Refers to utility as expressed in terms of ranks
• C. Showing different combinations of two commodities, offering the same level of satisfaction to the consumer
• D. Refers to the utility as expressed or measured in terms of units

Answer 1

Answer: (A)

Is the utility derived from the consumption of an addtional unit of a commodity

Marginal utility :- refers to additional utility when a unit more of the commodity is consumed by the consumer.
Ordinal utility :- refers to the utility as expressed or measured in terms of units.
Cardinal utility :- refers to utility as expressed in terms of ranks.
Indifference curve :- Showing different combinations of two commodities, offering the same level of satisfaction to the consumer.