Marginal Utility
EconomicsDecision MakingOptimization
Marginal Utility measures the additional satisfaction gained from consuming one more unit of a good or service.
Introduction
Marginal Utility measures the additional satisfaction gained from consuming one more unit of a good or service.
Core Concepts
- Diminishing Returns: Additional consumption yields lower incremental benefits.
- Consumer Choice: Balancing marginal utility and cost.
- Optimal Allocation: Allocating resources for maximum satisfaction.
Applications
- Pricing strategy for consumer products.
- Personal finance for spending decisions.
Related Resources
- Book: "Principles of Economics" by Alfred Marshall.
- Tools: Utility analysis charts.