Marginal Utility Is

question 41

Multiple Choice

Marginal utility is

• A) the utility received from consuming one unit of a good.
• B) the change in total utility due to a one-unit change in the quantity of a good consumed.
• C) the total utility received from consuming a certain quantity of a good divided by the quantity.
• D) the utility received by the last consumer of a good.

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Definitions:

Linear Approximations

A method for approximating the value of a function near a given point using the tangent line at that point.

Aggregate Plan

A plan for production, inventory, and stock levels over a medium range of time, aiming to balance demand and supply in a cost-effective manner.

Product Families

Groups of related products that are offered by a business, often sharing common components or targeting similar markets.

Safety Inventory

A buffer of additional stock kept to prevent out-of-stock situations, taking into account unforeseen fluctuations in demand or supply.