Multiple choice

Marginal utility is

  1. total minus average utility

  2. additional total utility because of one unit increase in commodity

  3. total utility divided by the number of units

  4. total utility

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Marginal utility is the additional satisfaction gained from consuming one more unit of a commodity. It is the difference in total utility when consumption increases by one unit, not the average or total.