Get the answers you need at Westonci.ca, where our expert community is dedicated to providing you with accurate information. Experience the convenience of getting reliable answers to your questions from a vast network of knowledgeable experts. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.
Sagot :
Answer:
be positive, negative, or zero
Explanation:
Marginal utility is the additional utility derived from consuming one more unit of a good
the consumption decision is to consume more units of a good that gives the higher utility per good.
Marginal utility = change in total utility / change in units consumed.
When marginal utility is positive, it means that increasing consumption by one unit increases total utility
When marginal utility is negative, it means that increasing consumption by one unit decreases total utility
When marginal utility is zero, total utility has reached its maximum and no more units of goods would be consumed
An example of marginal utility. Imagine a traveller arriving from the desert where he hadn't had a drink of water in days .he is offered his first glass of water. the first cup of water he drinks would give him the highest utility. As more and more cups of water is drank, marginal utility decreases. At the point where he is fully satisfied, he stops drinking water and marginal utility becomes zero.
We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. We hope this was helpful. Please come back whenever you need more information or answers to your queries. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.
