Marginal Utility

From knowledgebase
Revision as of 07:17, 25 August 2020 by Dirkjan (talk | contribs) (Created page with "In economics the concept of Utility describes the pleasure, satisfaction or benefit derived by a person from the consumption of goods or services. '''''Marginal Ut...")
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigation Jump to search

In economics the concept of Utility describes the pleasure, satisfaction or benefit derived by a person from the consumption of goods or services. Marginal Utility is the addition to total utility as a consumers purchases each extra unit of a good or service.

Marginal utility decreases per extra unit of consumption. This is called the law or decreasing marginal utility.