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Marginal Utility

Marginal util...

Question

Marginal utility of a commodity is:

A

Total minus average utility

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B

Addition to the total utility by the consumption of last unit of the commodity

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C

Total utility divided by total units of the commodity

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D

Total utility of all units of the commodity

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Solution

The correct option is B Addition to the total utility by the consumption of last unit of the commodity
MU is the additional utility derived from the consumption of last unit of the commodity.

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