Which of the following statements is correct? rev: 04_09_2018 Multiple Choice Total utility is the product of multiplying price times marginal utility. Total utility is the sum of marginal utilities. Total utility is the change in marginal utility as quantity consumed increases. Marginal utility is the sum of total utility.

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Ryder Weiss

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Which of the following statements is correct? rev: 04_09_2018 Multiple Choice Total utility is the product of multiplying price times marginal utility. Total utility is the sum of marginal utilities. Total utility is the change in marginal utility as quantity consumed increases. Marginal utility is the sum of total utility.

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Answers (1)

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Heather Mooney · Answer 1

Answer: Option (B) is correct.

Explanation:

Total utility refers to the total satisfaction level that a consumer can get from consuming all the units of a commodity.

Marginal utility refers to the utility that a consumer can get from consuming an additional unit of a commodity.

Therefore, the sum of these marginal utilities is nothing but the total utility or we can say that overall utility that a consumer can get from the consumption of a commodity.