Asked by Jayesh Reesaul on Jul 25, 2024
Verified
Total utility may be determined by
A) multiplying the marginal utility of the last unit consumed by the number of units consumed.
B) summing the marginal utilities of each unit consumed.
C) multiplying the marginal utility of the last unit consumed by product price.
D) multiplying the marginal utility of the first unit consumed by the number of units consumed.
Total Utility
The total satisfaction or benefit received by consuming a given total quantity of a good or service.
Marginal Utility
Marginal utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service.
- Acquire knowledge on the relationship between total utility and marginal utility.
Verified Answer
TT
Tasfia TasnimJul 31, 2024
Final Answer :
B
Explanation :
Total utility is determined by summing the marginal utilities of each unit consumed, as each unit's marginal utility contributes to the overall satisfaction (total utility) received from consuming all units.
Learning Objectives
- Acquire knowledge on the relationship between total utility and marginal utility.