Question

Marginal utility is

(a).the additional satisfaction produced as the firm adds one additionat unit of an input
(b).the additional satisfaction that a consumer derives from consuming one additional unit of a go
(c). the amount of utiity divided by the number of units procuced
(d).all of the above

Answer 1

Marginal utility is the additional satisfaction that a consumer derives from consuming one additional unit of a good. It diminishes as additional units are consumed, following the law of diminishing marginal utility.

Step-by-step explanation:

Marginal utility is the additional satisfaction that a consumer derives from consuming one additional unit of a good. It is the change in total utility divided by the change in quantity consumed. Marginal utility diminishes as additional units are consumed, meaning that each subsequent unit of a good consumed provides less additional utility. This is known as the law of diminishing marginal utility.