Which of the following is true?
A) Total utility is the aggregate level of satisfaction that results from consumption of a given number of goods and services.
B) Marginal utility is the additional satisfaction generated by the last unit of a good that is consumed.
C) Total utility equals marginal utility of the last unit times the number of units consumed.
D) Both a. and b. are true.

Question

Quizplus · Accepted Answer

Total utility refers to the overall satisfaction derived from consuming a certain quantity of goods and services. Marginal utility, on the other hand, represents the extra satisfaction gained from consuming one additional unit of a good or service. Therefore, both a. and b. are true. Option c. is incorrect as total utility is simply the sum of all the marginal utilities, not the marginal utility of the last unit multiplied by the quantity consumed.

Which of the Following Is True