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Net Profit Ratio

utility is de...

Question

_________ utility is derived from last unit of commodity consumed.

A

Average

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B

Marginal

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C

Total

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D

Zero

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Solution

The correct option is A Marginal
Marginal Utility is the measurement of satisfaction level of a consumer which he gains from the use of successive units of commodity. Marginal Utility derives its value from the consumption of last unit.
Average utility is calculated by dividing total utility by total number of units consumed.

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Q. The total utility, which a consumer derives from

n^{t h}

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(n - 1)

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