Question

Marginal utility of a good refers to the ............

• A. change in utility by consuming the good
• B. change in utility by consuming some additional units of the good
• C. rate of change in utility from per unit change in consumption of the good
• D. rate of change in utility from per unit monetary change in expenditure on the good

Hint:

Marginal utility measures how much additional utility is gained from consuming one more unit of a good.

Answer 1

The Correct Option is C

Step 1: Understand marginal utility.
Marginal utility refers to the additional satisfaction or utility that a person receives from consuming one more unit of a good or service.
Step 2: Analyze the options.
- Option (A) is incorrect because marginal utility specifically refers to the additional utility from consuming an additional unit, not just consuming the good in general.
- Option (B) is incorrect because the change in utility is from the consumption of some additional units, but it is the rate of change, not just the change itself.
- Option (C) is correct because marginal utility is defined as the rate of change in utility with respect to a one-unit change in the quantity consumed, which is how it is traditionally measured.
- Option (D) is incorrect because marginal utility is based on changes in consumption, not changes in expenditure.
Final Answer: \[ \boxed{\text{rate of change in utility from per unit change in consumption of the good}} \]