The unit of satisfaction dived from the consumption of an additional unit of a commodity is known as

Step 1: Analyze the question The question asks for the term used for the satisfaction gained from consuming one additional unit of a commodity. The key word is "additional," which points to a "marginal" concept. The word "satisfaction" points to "utility."

Step 2: Explain the concept In consumer theory, utility means the satisfaction a consumer gets from consuming goods and services.

• Total utility (TU): the total satisfaction from consuming all the units of a commodity.
• Average utility (AU): total utility divided by the number of units consumed (TU ÷ Q).
• Marginal utility (MU): the extra satisfaction from consuming one more unit, calculated as MU = change in TU ÷ change in Q.

Step 3: Work through the options

• A. Average utility: satisfaction per unit on average, not the extra unit. ✗
• B. Marginal cost: this is a production/cost concept, the extra cost of producing one more unit. ✗
• C. Marginal product: this is the extra output from employing one more unit of a factor of production. ✗
• D. Marginal utility: the extra satisfaction from consuming one additional unit. ✓
• E. Total utility: the sum of satisfaction from all units. ✗

Example: Suppose eating 2 oranges gives a TU of 30 units and eating a 3rd orange raises TU to 38. The marginal utility of the 3rd orange is 38 − 30 = 8 units.

Step 4: Answer The correct option is D. marginal utility.

Exam tip: Whenever you see "additional," "extra," or "one more unit," think marginal. Then check the second word: utility is about consumption, cost is about expenses, and product is about output. Also remember the law of diminishing marginal utility: as you consume more units, the marginal utility of each extra unit falls.