Practicing Success
Marginal utility of first unit is ____ to the total utility of first unit. |
Less than Equal More than Cannot be compared |
Equal |
The correct answer is Option (2) → Equal The marginal utility of the first unit is equal to the total utility of the first unit. Here's why:
For the first unit consumed, there's no concept of "additional" satisfaction because there's no prior consumption. The entire satisfaction you get comes from that single unit. So, in this case, the marginal utility and total utility for the first unit are the same. |