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★★★★★
44% · 14/32 Questions
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Start your 14-day free trial to unlock the full solution →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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