Marginal utility
A) Is the change in a consumer's utility resulting from the addition of a very small amount of some good
B) Is the total utility a resulting from consuming some good, divided by the amount consumed
C) Is the change in a consumer's utility resulting from the addition of a very small amount of some good, divided by the amount added
D) Is the change in a consumer's utility resulting from the addition of a very small amount of some good, divided by the total amount being consumed

Question

Quizplus · Accepted Answer

Marginal utility is the additional utility gained by consuming an additional unit of a good. It is calculated by dividing the change in utility resulting from the consumption of the additional unit by the amount of the good consumed. Therefore, choice C is the correct definition of marginal utility.

Marginal Utility