Marginal Utility Quiz

Marginal utility describes the change in utility of one unit of a good or service.

Positive marginal utility indicates that every additional unit consumed increases overall utility.

Negative marginal utility implies that every additional unit consumed causes more harm than good, leading to a decrease in overall utility.

<p>The law of diminishing marginal utility states that the first units of consumption of a good or service yields more satisfaction or utility than the subsequent units, and there is a continuing reduction in satisfaction.</p> Signup and view all the answers

<p>When eating pizza, the second piece may bring more satisfaction than the first, indicating positive marginal utility.</p> Signup and view all the answers