Choose correct statements about utility
Choose the correct answer from the options given below: |
A and B only B and C only C and A only B and D only |
B and D only |
Marginal utility refers to the benefit gained from consuming one additional unit of a commodity. According to the law of diminishing marginal utility, when consumption rises, the marginal utility gained from each extra unit decreases, all other things being equal. Also, total utility refers to the sum total of all the marginal utilities derived from a product. As utility is a behavioral concept, it varies from person to person. Psychologically, every consumer has his likes and dislikes and everyone determines his own level of satisfaction. |