Asked by OfficialAuzzi Clitnovici on Jul 16, 2024
Verified
Marginal utility is total utility divided by the number of units consumed.
Marginal Utility
The additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.
Total Utility
The total satisfaction received by consuming a certain amount of goods or services.
- Comprehend the principle of marginal utility and its connection to overall utility.
Verified Answer
JG
James GonzagaJul 20, 2024
Final Answer :
False
Explanation :
Marginal utility refers to the additional satisfaction or utility that a consumer receives from consuming an additional unit of a good or service, not the total utility divided by the number of units consumed.
Learning Objectives
- Comprehend the principle of marginal utility and its connection to overall utility.