Marginal Utility

question 85

Multiple Choice

Marginal utility:

• A)is the ratio of total utility to total consumption.
• B)is the rate at which total utility changes as the level of consumption rises.
• C)will always be equal to the product's price.
• D)tells us nothing; we're only concerned with total utility.

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Definitions:

Opportunity Cost

The economic impact of dismissing the next prime alternative while reaching a decision.

Scarce Resources

Limited supplies of inputs necessary for production, leading to trade-offs and choices in their allocation.

Capital

Assets or money possessed by an individual or organization, which can be used for initiating a business or investment purposes.

Marginal Rate

The additional cost or benefit associated with producing or consuming one additional unit of a good or service.