Crane Company produces two models: Model 24 has sales of 300 units with a contribution margin of $40 each; Model 26 has sales of
1 answer:
You might be interested in
Answer:
a. is the change in total satisfaction derived from consuming one more unit of a good.
Explanation:
Marginal utility: It defines as changes in total satisfaction of consumers with one additional unit changes in the consumption of goods. It derives satisfaction level of consumer with the units of goods consumed, similarly usage of product changes with the number of the product we have in stock or purchased.
Formula; Marginal utility=
There are several types of marginal utility:
- Zero marginal utility.
- Positive marginal utility.
- Negative marginal utility.
- Increasing marginal utility.
- Diminishing marginal utility.