what is meant by marginal utility?
Answers
Answer:
MU
Explanation:
marginal utility (MU) is the derived from the total utility (TU)
Like total utility is 0. MU
10. 10
20. 10
The increased number is called the marginal utility
Answer:
Marginal utility quantifies the added satisfaction that a consumer garners from consuming additional units of goods or services. The concept of marginal utility is used by economists to determine how much of an item consumers are willing to purchase. Positive marginal utility occurs when the consumption of an additional item increases the total utility, while negative marginal utility occurs when the consumption of an additional item decreases the total utility.
Example of Marginal Utility
David has four bottles of water, then decides to purchase a fifth bottle. Meanwhile, Kevin has 50 bottles of water and likewise decides to buy an additional bottle. In this case, David experiences more utility, because his extra bottle increases his total water supply by 25%, while Kevin's additional bottle augments his supply by a mere 2%.
Explanation:
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