Question

The additional satisfaction a consumer gains from consuming one more unit of a good or service is _______.

• A. total utility
• B. average utility
• C. marginal utility
• D. disutility

Answer 1

Answer: (C)

marginal utility

$MU=TU$ (from $n^{th}$ unit) $-TU$ ( from $n-1$ unit)

Here, MU=marginal utility

TU=total utility

For example, if a consumer gets $30$ utils by consuming $1$ unit and $20$ utils by consuming the $2^{nd}$ unit, then marginal utility will be $30-20=10$ units of utility.