Marginal utility of first unit is _____________ to the total utility of first unit.
Question
Marginal utility of first unit is _____________ to the total utility of first unit.
Solution
The marginal utility of the first unit is equal to the total utility of the first unit.
Here's why:
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Total utility is the total satisfaction a person receives from consuming a certain amount of goods or services.
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Marginal utility, on the other hand, is the additional satisfaction a consumer gains from consuming one more unit of a good or service.
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When you consume the first unit of a good or service, the total utility and the marginal utility are the same because there are no previous units to compare it to.
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Therefore, the marginal utility of the first unit is equal to the total utility of the first unit.
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