Question : How is marginal utility determined?
Option 1: TU/Q
Option 2: Q/TU
Option 3: MU/Q
Option 4: Q/MU
Answer (1)
24th Jan, 2024
Correct Answer: TU/Q
Solution :
Marginal utility is the additional satisfaction by consuming one more unit of an item or service is known as marginal utility
Marginal utility is obtained by dividing the change in total utility by the change in the total number of units consumed,
Hence MU = ∆TU/∆Q
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