Marginal Utility Is

question 44

Multiple Choice

Marginal utility is

• A) the utility obtained from the consumption of all but the last unit of a good.
• B) the relative value of two goods when a utility-maximizing decision has been made.
• C) the change in utility that results from increasing the amount of a good consumed by one unit.
• D) the change in the amount of a good consumed that increases total utility by one unit.
• E) none of the above

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Definitions:

Derived Demand

Demand for a factor of production or intermediate good that occurs as a result of the demand for another related final good or service.

MRP = MRC Rule

The principle that to maximize profit (or minimize losses), a firm should employ the quantity of a resource at which its marginal revenue product (MRP) is equal to its marginal resource cost (MRC), the latter being the wage rate in a purely competitive labor market.

Marginal Productivity

The additional output generated by employing one more unit of a specific factor of production while holding other factors constant.

Professional Soccer Players

Athletes who are paid to play soccer as their main occupation, often participating in national and international leagues.