Question 4
Theory of Consumer BehaviourThe entire satisfaction that a consumer derives from a successive consumption of a particular commodity is known as
- A.marginal utility
- B.total utility
- C.average utility
- D.diminishing utility.
Show the answer and explanation
Answer: B (total utility)
Explanation
Total utility is the whole satisfaction from all the units consumed; marginal utility is only the extra satisfaction from the last unit.