Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The additional satisfaction gained from consuming one more unit of a good.
B
The total satisfaction from all units consumed.
C
The decrease in satisfaction from consuming less of a good.
D
The cost of producing one more unit of a good.
Understanding the Answer
Let's break down why this is correct
Answer
Marginal utility is the extra satisfaction or benefit a person gets from consuming one more unit of a good or service. In economics, when people make choices about what to buy, they consider how much additional happiness or usefulness they will gain from each extra item. For example, if you eat one slice of pizza, you might feel very satisfied, but if you eat a second slice, the joy you get from it may be less than the first. This idea helps explain why people might stop buying something when the extra satisfaction from more of it is not worth the cost. Understanding marginal utility can help consumers make better choices by comparing the benefits of additional items to their prices.
Detailed Explanation
Marginal utility is about the extra happiness you get from using one more item. Other options are incorrect because This answer confuses total happiness with extra happiness; This option talks about losing happiness instead of gaining it.
Key Concepts
marginal utility
Topic
Understanding Marginal Analysis
Difficulty
easy level question
Cognitive Level
understand
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