Assume the total utilities corresponding to the first four units of a product consumed are 8, 12, 14, 15, respectively. The marginal utility of the third unit consumed is:
A) 2.
B) 14.
C) 4.
D) 34.

Question

Quizplus · Accepted Answer

Marginal utility is the additional satisfaction or utility that a consumer derives from consuming an additional unit of a good or service. It is calculated as the change in total utility from consuming one more unit. For the third unit, the total utility increases from 12 to 14, so the marginal utility is 14 - 12 = 2.

Assume the Total Utilities Corresponding to the First Four Units