Question

The total utility, which a consumer derives from $n^{th}$ units of a commodity minus the total utility he derives from $(n-1)$ units is:

• A. The marginal utility of the $nth$ unit
• B. Consumer's surplus at $n$ units
• C. Elasticity of the consumer's demand
• D. Consumer equilibrium demand

Answer 1

The correct option is A The marginal utility of the $nth$ unit

Marginal utility can be expressed as [$T{U}_n$ - $T{U}_{(n-1)}$].