Question

plz explain the term marginal utility

Answer 1

Hi.........

________________________________
Marginal utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service. 
______________________________

hope it will help u.. :-)

Answer 2

Marginal utility is defines as the level of satisfaction a consumer derives from an additional use of of a good or service. It is basically used by economists in order to determine the amount of good that a consumer is willing to buy.

There are two types of marginal utility. The first is called positive marginal utility which is incremental in total utility when an additional good is consumed.

The second is called negative marginal utility, when the consumption of an additional good reduces the total utility.

An example of marginal utility is consumption of one glass of water may satisfy a person's thirst. If a second glass of water is consumed, the satisfaction of having that will be less than the satisfaction gained from drinking the first. If a third is consumed, the satisfaction will be even less.