Marginal Utility
The additional satisfaction a consumer gains from consuming one more unit of a good or service. Investopedia Says:
For example, if you were really thirsty you'd get a certain amount of satisfaction from a glass of water. This satisfaction would probably decrease with the second glass, and then even more with the third glass. The additional amount of satisfaction that comes with each additional glass of water is marginal utility. Related Terms:
Bernoulli's Hypothesis
Economics
Efficiency Principle
Intertemporal Choice
Law of Diminishing Marginal Utility
Total Utility
Utility |