What is the difference between total utility and marginal utility?
Choose 1 answer:
(A) Total utility is the dollar value of all consumption; marginal utility is the dollar value of one more unit of consumption
(B) Total utility is consumers' satisfaction of the last unit of consumption; marginal utility is consumers' satisfaction from all consumption.
C. Total utility is the value to sellers of all production; marginal utility is the value to sellers of one more unit of production
(D) Total utility is consumers' satisfaction with all consumption; marginal utility is consumers' satisfaction from one more unit of consumption.
(E) Total utility is the value to sellers of all production; marginal utility is the value to sellers of all production less the costs of production.

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Accepted Answer

∻Solution∻ ‖ a ⋮ Understanding Total Utility: Total utility refers to the total amount of satisfaction or pleasure a consumer receives from consuming a certain quantity of goods or services. ‖ ‖ b ⋮ Understanding Marginal Utility: Marginal utility is the additional satisfaction or utility a consumer gains from consuming one more unit of a good or service. ‖ ‖ c ⋮ Analyzing the Options: Option (D) correctly defines total utility as the overall satisfaction from all consumption and marginal utility as the satisfaction from consuming one additional unit. ‖ ∻Answer∻ ⚹ (D) Total utility is consumers' satisfaction with all consumption; marginal utility is consumers' satisfaction from one more unit of consumption. ⚹ ∻Key Concept∻ ⚹ Total vs. Marginal Utility ⚹ ∻Explanation∻ ⚹ Total utility is the cumulative satisfaction from consuming a product, while marginal utility is the change in satisfaction from an additional unit consumed. ⚹◊What is the formula for calculating marginal utility in economics?⍭ Generate me a similar question◊

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