Marginal utility, Microeconomics

Marginal utility 

- It is the measure of the additional satisfaction obtained from consuming one additional unit of good.

* Marginal Utility: An instance

- The marginal utility can be derived from increasing from 0 to 1 units of food may be 9

- Increasing from 1 to 2 may be 7

- Increasing from 2 to 3 may be 5

*  Observation: Marginal utility is getting diminished

* Diminishing Marginal Utility

- The principle of the diminishing marginal utility states that as more a good is used, using additional amounts will yield smaller additions to utility.

Relationship between Total and Marginal Utility

*  Diminishing Marginal Utility: An Example

1951_diminishing marginal utility.png

1443_marginal utility.png

708_marginal utility1.png

Posted Date: 10/10/2012 6:35:20 AM | Location : United States







Related Discussions:- Marginal utility, Assignment Help, Ask Question on Marginal utility, Get Answer, Expert's Help, Marginal utility Discussions

Write discussion on Marginal utility
Your posts are moderated
Related Questions
how can draw the table and diagram of production function function with one veriable

You are the final voter in a brand new start-up league, the Ultra Fun Foosball League (UFFL). The directors are looking to you to make the decisions on how many teams to place in a

types of demand

Explain the approach of characterizing the modern economic environment. Modern economics gives various perspectives or angles to seem at real world economic issues. An economic

can i get a case study on share market or any other company about their exceptions to the law of demand?

Player 2   C B A 1,2 3,2 B 2,3 a, b         Player 1

"Dr. Arata Kochi, the World Health Organisation malaria chief,... [says that] eradication is counterproductive. With enough money, he said, current tools like nets, medicines and D

suppose, as in the federal income tax code for the united states, that the representative consumer faces a wage income tax with a standard deduction. That is the representative con

related documents, photos,paper for permission from court etc.

Identify path of growth and development to economic maturity.