Asked by Kimberly Valencia-Franco on May 02, 2024
Verified
The marginal utility of coffee consumption for Steve is the change in _____ generated by consuming an additional cup of coffee.
A) total utility
B) total consumption
C) total demand
D) price
Marginal Utility
The additional satisfaction or benefit received by consuming one more unit of a good or service.
Total Utility
The total satisfaction or benefit received by consuming a certain amount of goods or services.
Consumption
The use of goods and services by households, leading to the satisfaction of wants and needs.
- Differentiate between marginal utility and total utility.
Verified Answer
SF
Sikdar FahimaMay 06, 2024
Final Answer :
A
Explanation :
Marginal utility refers to the change in total utility that results from consuming one additional unit of a good. Therefore, the correct choice is A because it refers to the change in total utility generated by consuming an additional cup of coffee.
Learning Objectives
- Differentiate between marginal utility and total utility.
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