Economics • Economic BasicsEasy
Which of the following economic concepts refers to the additional satisfaction or utility that a consumer derives from consuming one more unit of a good or service?
A. Total Utility
B. Marginal Utility✓ Correct Answer
C. Average Utility
D. Diminishing Utility
💡 Solution & Explanation
Marginal utility measures the change in total satisfaction experienced by a consumer when consumption increases by exactly one additional unit of a commodity. Total utility represents the cumulative satisfaction derived from all units consumed, whereas average utility is total utility divided by the number of units.
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