Asked by Nicole Castellanos Mota on Jun 19, 2024
Verified
Marginal utility is total utility divided by the number of units consumed.
Marginal Utility
The extra contentment a customer obtains by using an additional unit of a product or service.
Total Utility
The aggregate level of satisfaction or benefit that a consumer derives from consuming a particular quantity of goods or services.
- Elucidate the influence of marginal utility on aggregate utility and the demand patterns of consumers.
Verified Answer
KH
Karandeeep HandaJun 23, 2024
Final Answer :
False
Explanation :
Marginal utility is the additional utility gained from consuming one additional unit of a good, not the total utility divided by the number of units consumed.
Learning Objectives
- Elucidate the influence of marginal utility on aggregate utility and the demand patterns of consumers.