The Change in Satisfaction Derived When an Individual Consumes One

question 213

Multiple Choice

The change in satisfaction derived when an individual consumes one more unit of a good or service is called

• A) total utility.
• B) marginal utility.
• C) average utility.
• D) fixed utility.

---

Definitions:

True Valuation

The actual worth of a good or service to an individual, reflecting the maximum amount they are willing to pay to acquire it.

English Auction

A common type of auction where participants openly bid against one another, with the price gradually increasing until only the highest bidder remains.

Rational Self-Interest

The principle that individuals tend to make decisions that they perceive to be the best for their own welfare and success.

Collude

A secret or illegal cooperation or conspiracy, especially between parties to deceive or defraud others.