Consumers decide to buy another unit of a good by: a) comparing the total spending on the good...
Question:
Consumers decide to buy another unit of a good by:
a) comparing the total spending on the good to the total utility of the good.
b) comparing the price of the good to the marginal utility of the good.
c) comparing the price of the good to the total utility of the good.
d) comparing the total spending on the good to the marginal utility of the good.
Utility
To harvest the highest level of utility is the reason why consumers consume goods and services from the market. The utility is the contentment level that a commodity can give. Utility differs from consumer to consumer and from commodity to commodity.
Answer and Explanation: 1
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View this answerb) comparing the price of the good to the marginal utility of the good
The consumer will consume an extra unit of the commodity till the time the...
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What is Marginal Utility? - Definition, Theory, Formula & Example
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Chapter 3 / Lesson 10
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Learn about marginal utility and how it is calculated. Explore the basics of marginal utility, the marginal utility equation, and how it is applicable in economics.
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