Marginal utility (MU) equals:
A) P/Q.
B) Q/TU.
C) PQ/TU.
D) TU/P.
E) TU/Q.

Name: Marginal utility (MU) equals: A) P/Q. B) Q/TU. C) PQ/TU. D) TU/P. E) TU/Q.
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Question

Quizplus · Accepted Answer

Marginal utility (MU) is expressed as the change in total utility (TU) resulting from a one-unit increase in the quantity (Q) of a good consumed. Therefore, MU = ΔTU/ΔQ or TU(Q+1)-TU(Q). As a result, the best choice is E, which is TU/Q.

Marginal Utility (MU) Equals