The marginal utility of a good refers to the:
Correct answer: B. Extra utility associated with consuming another unit of the good
- A. Total utility of the good for consumption of the last unit
- B. Extra utility associated with consuming another unit of the good
- C. Utility associated with consuming an alternative good
- D. Consumer surplus associated with the consumption of an alternative good
Explanation
Marginal utility is the additional satisfaction gained from consuming one more unit of a good. It differs from total utility, which is the satisfaction from all units consumed.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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