The concept of marginal utility indicates the relationship between utility and _________?

johnlawrence

9 years ago

please utility here defines the satisfaction derived from the consumption of a certain commodity so the answer is price ..because MUx=Px

Anthonysama

2 years ago

its price because if you pick satisfaction, it is a tautology,utility is the same thing as satisfaction on the other hand the study of utility helps us to understand the relationship between marginal utility and price.The price of a commodity must be equal to the marginal utility gained from consuming a commodity inorder for a consumer's utility to be maximised.
"MUx=Px,its a simple deduction

Esther56789

4 years ago

price is the answer bcos utiliy and satisfaction means the same thing

MAKAGOD

9 years ago

law of diminishing return/utilities or popular called marginal utility

Vioncy

9 years ago

LiE! THE ANSWER IS "B" SATISFACTION marginal utility is the satisfaction derived from an extra consumption