Question

The change in total utility a person derives from consumption of an additional unit of a good is called _______.

• A. utility
• B. variable utility
• C. marginal utility
• D. total utility

Answer 1

Answer: (C)

marginal utility

• Marginal utility is the additional utility derived from the consumption of one more unit of the given commodity.
• It is the addition made to the total utility by consuming one more unit of any product. It the change in total utility divided by the change in the number of units.
• For example, if one is thirsty, he drinks one glass of water he gets some satisfaction. If he drinks a second glass of water he gets a certain level of satisfaction. Now the difference between the level of satisfaction by drinking from both the glasses is MU.