At what quantity does the total utility equal to marginal utility?

Question:

At what quantity does the total utility equal to marginal utility?

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.


Learn more about this topic:

Loading...
What is Marginal Utility? - Definition, Theory, Formula & Example

from College Macroeconomics: Homework Help Resource

Chapter 3 / Lesson 10
115K

Related to this Question

Explore our homework questions and answers library