Marginal utility equals the change in total utility divided by
A) the number of units consumed.
B) the price of the product.
C) the change in the number of units consumed.
D) the consumer's subjective level of preference.

Question

Quizplus · Accepted Answer

Marginal utility is the change in total utility resulting from a one-unit change in the consumption of a good. Therefore, it is divided by the change in the number of units consumed (i.e. option C). It is not divided by the number of units consumed (option A) or the price of the product (option B). It is also not divided by the consumer's subjective level of preference (option D), as this is not a measurable factor in utility theory.

Marginal Utility Equals the Change in Total Utility Divided by