Marginal utility is measured by:
A) a ray from the origin to a point on the total utility curve.
B) the change in total utility for a 1-unit change in the quantity consumed.
C) total utility divided by total quantity consumed.
D) the first utility minus the last utility.
E) average utility multiplied by the total quantity consumed.

Question

Quizplus · Accepted Answer

Marginal utility is the change in total utility for a 1-unit change in the quantity consumed. Option B is the only choice that correctly describes this definition. Option A may describe the slope of the total utility curve, but does not measure marginal utility. Option C describes average utility, not marginal utility. Option D describes the difference between the first and last utility, which may not be the same as the change in utility for each unit consumed. Option E combines average utility with total quantity consumed, which is not a measure of marginal utility.

Marginal Utility Is Measured By