Asked by ashlee clowers on Jun 13, 2024
Verified
Which of the following statements is correct?
A) Marginal utility is the accumulation or summation of total utility.
B) Total utility is the accumulation or summation of marginal utility.
C) Total utility is the product of multiplying price times marginal utility.
D) Total utility is the change in marginal utility as quantity consumed increases.
Marginal Utility
The change in satisfaction or utility gained by consuming an additional unit of a good or service.
Total Utility
The overall contentment derived from the consumption of a specific number of goods or services.
- Absorb the affinity between total utility and marginal utility.
Verified Answer
AB
Alfredo BlankJun 16, 2024
Final Answer :
B
Explanation :
Total utility is the accumulation or summation of marginal utility, meaning it is the total satisfaction received from consuming a certain amount of a good or service, calculated by adding up the marginal utilities of each unit consumed.
Learning Objectives
- Absorb the affinity between total utility and marginal utility.