The amount of satisfaction per unit of the commodity consumed is called

Step 1: Analyze the question The question asks for the term describing the satisfaction obtained per unit of a commodity consumed. The key phrase is "per unit," which points to an average.

Step 2: Explain the concepts

• Total utility (TU): the total satisfaction from consuming all units of a commodity.
• Marginal utility (MU): the extra satisfaction from consuming one more unit. MU = change in TU ÷ change in quantity.
• Average utility (AU): the satisfaction per unit consumed. AU = TU ÷ number of units.
• Average cost and marginal cost: these relate to production costs, not satisfaction, so they can be ruled out.

Step 3: Work through the options

• A. Average cost: a production concept, so it is wrong.
• B. Average utility: TU divided by units consumed, which is satisfaction per unit. This fits.
• C. Marginal cost: a production concept, so it is wrong.
• D. Marginal utility: satisfaction from the additional unit, not per unit on average. It is wrong.
• E. Total utility: the overall satisfaction, not per unit. It is wrong.

Step 4: Answer Example: if you eat 4 oranges and get 40 utils in total, the average utility is 40 ÷ 4 = 10 utils per orange.

Tip: Link the keyword to the concept. "Per unit" means average, "additional unit" means marginal, and "all units" means total. Also, cost words (average/marginal cost) belong to producers, while utility words belong to consumers.