ECON 208 Lecture Notes - Giffen Good, Inferior Good, Normal Good

Marginal utility is defined as the

a. extra satisfaction the consumer receives from an extra $1 of income.

b. total level of satisfaction a consumer receives upon the consumption of a certain number of goods.

c. number of hours a consumer would be willing to work to receive a certain product.

d. extra satisfaction a person derives from consuming an additional unit of a good.

The theory of consumer behavior assumes that 

1.  marginal utility is constant.

2.  consumers behave rationally, attempting to maximize their satisfaction

3. consumers do not know how much marginal utility they obtain from successive units of various products.

4. consumers have unlimited money incomes.

1. Which of the following defines marginal utility?

A. the change in total utility divided by the price of a product

B. the maximum amount of satisfaction from consuming a product

C. the total satisfaction received from consuming as much of the product that is available for consumption

D. the additional satisfaction received from consuming one more unit of a product