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What does "marginal utility" mean?

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Question

What does "marginal utility" mean?

Options

  • Increase in income from selling a product

  • Extra satisfaction from consuming one more unit

  • Money spent on all products

  • Total benefit from all goods bought

MCQ
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Solution

Extra satisfaction from consuming one more unit

Explanation:

Marginal utility is the change in satisfaction when a person consumes one additional unit of a product.

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