Marginal Utility Is

question 343

Multiple Choice

Marginal utility is

• A) the utility received by the last consumer of a good.
• B) the total utility received from consuming a given quantity of a good divided by the number of units consumed.
• C) the change in total utility from consuming an additional unit of a good.
• D) the utility received from consuming the first unit of a good.

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Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by many people simultaneously without depletion.

Pareto Optimal

A scenario in resource distribution where it's impossible to benefit one individual through reallocation without causing harm to another individual.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning that no one can be effectively excluded from use and one person's use does not diminish another's.

Private Consumption

The spending on goods and services by individuals or households, as opposed to public or government spending.