Question

Soal 12 Marginal utility measures the Select one:
a. additional cost of an additional unit of consumption.
b. additional utility from an additional unit of consumption.
c. total utility from consumption.
d. average utility from an additional unit of consumption.

Answer 1

Q) Ans:-

Step1)

The utility of a Commodity:

The term utility of a commodity refers to the satisfying power or the level of satisfaction that a person receives is called the utility and the utility of the commodity is measured in utils.

Step2)

b. additional utility from an additional unit of consumption.

Option B is correct because MU (marginal utility is derived when there is an extra or additional unit of consumption. Moreover, Marginal utility falls when total utility rises and MU becomes zero when total utility is maximum. Further, when the total utility falls then the MU becomes negative.

Step3)

Answer.

b. additional utility from an additional unit of consumption.