Question

Marginal utility is ______.

Options

• The utility from first unit of a commodity consumed

• The utility from the last unit consumed

• Total utility divided by number of units consumed

• Always positive

Answer 1

Marginal utility is the utility from the last unit consumed.

Explanation:

Marginal utility is the additional utility from the last, or one more, unit consumed. The first unit’s utility is initial utility, and MU can be zero or negative.