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Question 14 of 32

Q.Give economic terms:
Additional utility derived by a consumer from an additional unit consumed.

Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2022Subjective· 1mImportance★★★★★
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The economic term is Marginal Utility (MU) — the extra satisfaction a consumer derives from consuming one additional unit of a commodity.

Utility is the want-satisfying power of a good. Two related measures are used:

  • Total Utility (TU) — the total satisfaction obtained from consuming all the units of a commodity.
  • Marginal Utility (MU) — the addition made to total utility by consuming one more unit, i.e. MU = change in TU / change in units consumed. …

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