Question

As an individual consumes slices of pizza, the _____ is the amount of satisfaction that he receives from each additional piece of pizza. total utility consumption availability marginal utility absolute utility

Answer 1

The correct option is marginal utility.

This is the additional satisfaction a consumer gains from consuming one more unit of a good or service. It claims that there is a decline in the marginal utility that person derives from consuming each additional unit. Marginal utility is an important economic concept as it determines how much of an item a consumer will consume.