Definitions for marginal utility
mar·gin·al util·i·ty

Princeton's WordNetRate this definition:0.0 / 0 votes

1. marginal utilitynoun

   (economics) the amount that utility increases with an increase of one unit of an economic good or service

WiktionaryRate this definition:0.0 / 0 votes

1. marginal utilitynoun

   The additional utility to a consumer from an additional unit of an economic good.

WikipediaRate this definition:0.0 / 0 votes

1. Marginal utility

   In economics, utility is the satisfaction or benefit derived by consuming a product. The marginal utility of a good or service describes how much pleasure or satisfaction is gained or lost by consumers as a result of the increase or decrease in consumption by one unit. There are three types of marginal utility. They are positive, negative, or zero marginal utility. For instance, you like eating pizza, the second piece of pizza brings you more satisfaction than only eating one piece of pizza. It means your marginal utility from purchasing pizza is positive. However, after eating the second piece you feel full, and you would not feel any better from eating the third piece. This means your marginal utility from eating pizza is zero. Moreover, you might feel sick if you eat more than three pieces of pizza. At this time, your marginal utility is negative. In other words, a negative marginal utility indicates that every unit of goods or service consumed will do more harm than good, which will lead to the decrease of overall utility level, while the positive marginal utility indicates that every unit of goods or services consumed will increase the overall utility level. In the context of cardinal utility, economists postulate a law of diminishing marginal utility, which describes how the first unit of consumption of a particular good or service yields more utility than the second and subsequent units, with a continuing reduction for greater amounts. Therefore, the fall in marginal utility as consumption increases is known as diminishing marginal utility. Economists use this concept to determine how much of a good or service that a consumer is willing to purchase.

ChatGPTRate this definition:0.0 / 0 votes

1. marginal utility

   Marginal utility refers to the additional satisfaction or benefit that a consumer derives from consuming one more unit of a good or service. It essentially measures the usefulness obtained from acquiring one additional unit of a product.

WikidataRate this definition:0.0 / 0 votes

1. Marginal utility

   In economics, the marginal utility of a good or service is the gain from an increase or loss from a decrease in the consumption of that good or service. Economists sometimes speak of a law of diminishing marginal utility, meaning that the first unit of consumption of a good or service yields more utility than the second and subsequent units, with a continuing reduction for greater amounts. The marginal decision rule states that a good or service should be consumed at a quantity at which the marginal utility is equal to the marginal cost. The concept of marginal utility played a crucial role in the marginal revolution of the late 19th century, and led to the replacement of the labor theory of value by neoclassical value theory in which the relative prices of goods and services are simultaneously determined by marginal rates of substitution in consumption and marginal rates of transformation in production, which are equal in economic equilibrium.

Matched Categories

1. • Economics
   • Utility

How to pronounce marginal utility?

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How to say marginal utility in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of marginal utility in Chaldean Numerology is: 4

2. Pythagorean Numerology

   The numerical value of marginal utility in Pythagorean Numerology is: 2

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=marginal utility
2. ^ Wiktionary
   https://en.wiktionary.org/wiki/Marginal_Utility
3. ^ Wikipedia
   https://en.wikipedia.org/wiki/Marginal_Utility
4. ^ ChatGPT
   https://chat.openai.com
5. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=marginal utility