Asked by
Sarina Singh
on Oct 08, 2024Verified
The first Pepsi yields Craig 18 units of utility and the second yields him an additional 12 units of utility.His total utility from three Pepsis is 38 units of utility.The marginal utility of the third Pepsi is:
A) 26 units of utility.
B) 6 units of utility.
C) 8 units of utility.
D) 38 units of utility.
Marginal Utility
The additional satisfaction or utility that a person receives from consuming one more unit of a good or service.
Total Utility
The overall satisfaction or value that a consumer derives from consuming a certain quantity of goods or services.
Units
In economics, a quantifiable measure used to express the quantity of goods or services.
- Clarify the linkage between marginal utility and total utility.
Verified Answer
TC
Learning Objectives
- Clarify the linkage between marginal utility and total utility.