Lesson 17 pg. 53-54

Question 1

Describe diminishing marginal utility

Answer 1

> states that “as one’s supply of a specific good or service increases, the satisfaction derived from each additional unit tends to decrease”

Question 2

Define marginal utility

Answer 2

marginal utility - amount of satisfaction that results from a one-unit increase of a product

Question 3

Define total utility

Answer 3

total utility - total amount of satisfaction received from possessing a particular amount of a good