_________is the change in total utility due to consumption of one additional unit of a commodity.

This question was previously asked in
SSC CHSL Tier-I Exam 2022 Official Paper (Held On: 13 March, 2023 Shift 1)
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  1. Product Utility (PU)
  2. Revenue utility (RU)
  3. Demand utility (DU)
  4. Marginal utility (MU)

Answer (Detailed Solution Below)

Option 4 : Marginal utility (MU)
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SSC CHSL General Intelligence Sectional Test 1
25 Qs. 50 Marks 18 Mins

Detailed Solution

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The 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= TU- 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.

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