To calculate the marginal utility of consuming the Nth product: a. divide total satisfaction from consuming all N products by N. b. subtract additional satisfaction from consuming the (N - 1) th production from the additional satisfaction from consuming the Nth product. c. subtract total satisfaction from consuming N - 1 products from total satisfaction from consuming N products. d. divide total satisfaction from consuming all N products by the price of the product.

Question

Natalee Long

Business

6 October, 08:53

To calculate the marginal utility of consuming the Nth product: a. divide total satisfaction from consuming all N products by N. b. subtract additional satisfaction from consuming the (N - 1) th production from the additional satisfaction from consuming the Nth product. c. subtract total satisfaction from consuming N - 1 products from total satisfaction from consuming N products. d. divide total satisfaction from consuming all N products by the price of the product.

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Lawrence · Answer 1

c. Subtract total satisfaction from consuming N - 1 (first) products from total satisfaction from consuming N products

Explanation:

By definition, marginal utility of consuming one more unit of product or service is the additional satisfaction of consuming that unit of product or service.

That additional satisfaction from (consuming) the Nth products = total satisfaction from (consuming) all N products - satisfaction from consuming (first) N - 1 products

(first) should be added, because you are finding the satisfaction from the last consumed product.