Marginal utility
A) occurs when total utility declines as consumption increases.
B) is the additional satisfaction derived from consuming one more unit of a good or service.
C) is the combination of goods and services that maximizes utility for a given income.
D) occurs when a consumer buys more of a good as a result of a relative price change.
E) occurs when there is a change in purchasing power as a result of a change in the price of a good.

Question

Quizplus · Accepted Answer

Marginal utility refers to the additional satisfaction or benefit a consumer derives from consuming one more unit of a good or service. It is usually measured in terms of the change in total utility resulting from the consumption of an additional unit of the good or service.

Marginal Utility