Asked by Adarsh Shukla on Jun 12, 2024
Verified
The amount by which total utility _____ when an additional unit of a good is consumed is _____.
A) changes;average utility
B) increases;the income effect
C) decreases;maximum utility
D) changes;marginal utility
Marginal Utility
The change in total utility a person receives from consuming one additional unit of a good or service.
Total Utility
The total satisfaction received from consuming a particular quantity of a good or service.
Average Utility
The total utility received from a certain amount of goods or services divided by the number of goods or services consumed.
- Comprehend the principle of marginal utility and its utilization in making consumer decisions.
Verified Answer
WJ
William JackmanJun 13, 2024
Final Answer :
D
Explanation :
The amount by which total utility changes when an additional unit of a good is consumed is referred to as the marginal utility. Therefore, the best choice is D - changes; marginal utility.
Learning Objectives
- Comprehend the principle of marginal utility and its utilization in making consumer decisions.