Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

A consumer derives 10 utilities of satisfaction from consuming 1st unit of good X and 6 utilities of satisfaction from the next unit. What is the marginal utility of the second unit?

Options:

10 utilis.

14 utilis.

6 utilis.

16 utilis.

Correct Answer:

6 utilis.

Explanation:

The correct answer is Option (3) → 6 utilis.

Marginal Utility (MU) is the additional satisfaction a consumer gets from consuming one more unit of a good.

In this question:

  • Total utility from 1st unit = 10 utils

  • Total utility after consuming 2 units = 10 + 6 = 16 utils

  • So, Marginal Utility of the second unit = 16 – 10 = 6 utils

But since the question already states that the second unit gives 6 utils of satisfaction, that is directly the Marginal Utility of the second unit.