Marginal Utility Refers to The

question 66

Multiple Choice

Marginal utility refers to the:

• A) Additional utility from consuming the last unit of a good.
• B) Change in utility from the last unit consumed.
• C) Utility derived from consuming all of the good.
• D) Opportunity cost of the gooD.

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Definitions:

Market Equilibrium

A state in the market where the quantity demanded by consumers equals the quantity supplied by producers, leading to a stable price for a good or service.

Socially Optimal Level

A state in which resources are allocated in the most efficient way possible, maximizing societal welfare or benefit.

Positive Externalities

Benefits experienced by third-parties or the society at large due to an economic activity, not directly involved in the transaction, such as education or vaccination.

Education

The method of being taught or teaching methodically, particularly in an educational institution like a school or university.