marginal utility

Created: 2022-12-27
Status: #soil
Last Edited: 2022-12-27
Topic: economics

What is marginal utility?

Marginal utility is an economic concept that refers to the additional satisfaction or benefit that a consumer receives from consuming one additional unit of a good or service.

It is an important concept in economics, as it helps explain why people are willing to pay different prices for the same product. In other words, it helps explain why people are willing to pay more for the same product if they have already consumed a large quantity of it.