If you purchase a gift worth $12 for your sister, but your sister would be willing to pay only $8 if she bought the item for herself, then the

A) total utility of the gift is $20.
B) total utility of the gift is $4.
C) marginal utility of the gift is $4.
D) loss of value in the gift is $4.

Marginal Utility

The extra pleasure or advantage a customer gains by consuming an additional unit of a product or service.

Loss of Value

The decrease in worth of an asset or investment over time, often due to market fluctuations or the asset's deterioration.

Total Utility

The overall satisfaction or happiness a consumer derives from consuming a certain quantity of a good or service.