Marginal utility

change in satisfaction resulting from an increase or decrease in consumption of one unit of a good or service From Wikipedia, the free encyclopedia

Marginal utility
Remove ads

Marginal utility is a concept from economics that describes the change in utility from consuming more or less of a good or service. Economists sometimes speak of a law of diminishing marginal utility, meaning that consuming the first unit usually has a higher utility than every other unit. When the number of units that are consumed increases, their marginal utility decreases.

Thumb
The marginal utility decreases, with every unit consumed

The more we have a commodity or a service, the less we want to have more of it.

Remove ads
Loading related searches...

Wikiwand - on

Seamless Wikipedia browsing. On steroids.

Remove ads