Case study: Suppose your father comes back home from work and you offer him a glass of juice. The first glass of juice will give him great satisfaction. The satisfaction from second glass of juice will be relatively less. With further consumption, a stage will come when he would not require any more glass of water. If he is forced to consume even one glass that would lead to disutility.
If the consumption of an additional unit of a commodity causes no change in total utility then marginal utility of a commodity will be __________.
Which of the following options suits best in the above blank?
Answer & explanation
Correct answer: option 4
The correct answer is Option 4: zero
Explanation:
- Marginal utility measures the additional satisfaction or utility gained from consuming one more unit of a good.
- When the consumption of an additional unit of a commodity causes no change in total utility, it means that the marginal utility of that unit is zero.
- This indicates that the consumer is neither gaining nor losing satisfaction by consuming the additional unit, implying that the marginal utility is zero.