Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 6 - Consumer Behavior - Quick Quiz for Figure 6.1 - Page 118: 3

Answer

Option b. neither rising nor falling.

Work Step by Step

Marginal utility is defined as the "extra satisfaction from the consumption of one more unit of some good or service." In simpler words, marginal utility is the difference between the total utility at consecutive consumptions of services or goods. new total utility = old total utility + marginal utility ____(1) Where marginal utility keeps changing with every consumption of goods or services If we take marginal utility = 0 in equation (1), we get new total utility = old total utility, i.e. no change in total utility.
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