At what quantity does the total utility equal to marginal utility?
Marginal utility is the additional utility that a consumer receives from consumption of an additional unit of output. The marginal utility is the utility of only the last unit consumed.
Answer and Explanation:
The marginal utility equals total utility only for the first unit consumed. When the consumer does not consume any units, the total utility is zero. Therefore, the marginal utility of the first unit is the same as the total utility because the total utility will increase from zero to this amount.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from College Macroeconomics: Homework Help ResourceChapter 3 / Lesson 10