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Marginal utility is the added satisfaction a consumer gets from having one more unit of a good or service. The concept of marginal utility is used by economists to...
In mainstream economics, marginal utility describes the change in utility (pleasure or satisfaction resulting from the consumption) of one unit of a good or service. [1] Marginal utility can be positive, negative, or zero.
The concept implies that the utility or benefit to a consumer of an additional unit of a product is inversely related to the number of units of that product he already owns. Marginal utility can be illustrated by the following example.
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Define what economists mean by utility. Distinguish between the concepts of total utility and marginal utility. State the law of diminishing marginal utility and illustrate it graphically. State, explain, and illustrate algebraically the utility-maximizing condition.
The meaning of MARGINAL UTILITY is the amount of additional utility provided by an additional unit of an economic good or service.
Marginal utility is specifically the utility that consumers derive from the consumption of additional units of goods and services. In other words, it is the difference or change in satisfaction with an extra unit of consumption.