Question
Download Solution PDF_________is the change in total utility due to consumption of one additional unit of a commodity.
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is Marginal utility (MU).
Key Points
- Marginal utility -
- It is the additional utility derived from the consumption of an additional unit of a commodity.
- Marginal utility is also known as Marginal Satiety.
- MU = Change in TU/Change in Quantity
- MU= TUn - TUn-1
- Also, Marginal Utility is the additional utility made to be TU by the additional consumption of one more unit of a commodity.
Additional Information
- Product Utility (PU)
- Product Utility (PU) refers to the perceived value or usefulness that a product provides to its users or customers.
- It is a concept commonly used in marketing and product development to assess and understand the benefits and satisfaction derived from a product
- Revenue Utility (RU)
- Revenue Utility (RU) refers to the economic benefit or value that a consumer derives from purchasing and consuming a particular good or service.
- It is a concept used in economics to measure the satisfaction or utility that individuals receive from the money they spend on goods and services.
- Demand utility (DU)
- Demand utility (DU) refers to the satisfaction or value that an individual or consumer derives from consuming or using a particular good or service.
- It is a concept commonly used in economics and consumer theory to measure the subjective benefit or enjoyment a consumer obtains from a product.
Last updated on Jul 18, 2025
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