Marginal utility is defined as:
A) the extra satisfaction the consumer receives from an extra $1 of income.
B) the total level of satisfaction a consumer receives upon the consumption of a certain number of goods.
C) the number of hours a consumer would be willing to work to receive a certain product.
D) the extra satisfaction a person derives from consuming an additional unit of a good.

Question

Quizplus · Accepted Answer

Marginal utility refers to the extra satisfaction a person derives from consuming an additional unit of a good. It is based on the principle of diminishing marginal utility, which states that as a person consumes more and more of a good, the amount of additional satisfaction they receive from each additional unit consumed decreases.

Marginal Utility Is Defined As