Question

Marginal Utility (MU) of n^th unit is calculated as ______.

Options

• `(M U_{n}=T U_{n}-T U_{n+1})`

• `(M U_{n}=T U_{n}+T U_{n+1})`

• `(M U_{n}=T U_{n}+T U_{n-1})`

• `(M U_{n}=T U_{n}-T U_{n-1})`

Answer 1

Marginal Utility (MU) of n^th unit is calculated as `\underline(M U_{n}=T U_{n}-T U_{n-1})`.

Explanation:

Marginal utility of the nth unit is the increase in total utility from n−1 units to n units. Thus, it equals TUₙ − TUₙ₋₁.