2006-07-24 16:36:21 · 4 answers · asked by semaj2664 1 in Education & Reference ➔ Higher Education (University +)
Utility gained by having one more item. So, if you are eating slices of pizza. The first slice of pizza give you LOTS of satisfaction. But the 6 or seventh slice gives you satifaction but nearly as much as the first slice. So, the first slice give HUGE marginal utility and the 7th slice give little marginal utility.
From my college microeconomics text book, Marginal Utility is "The marginal utility of a commodity to a consumer (measured in money terms) is the maximum amount of money that he or she is willing to pay for one more unit of a commodity."
2006-07-24 16:46:50 · answer #1 · answered by Lief Y 3 · 0⤊ 0⤋
Marginal utility of money means utilities drawn from additional unit of money. Believer of marginalism said as you have more and more of one thing the need for it diminishes and it is true for money . As one earn more and more the time will come the utility drawn from last unit of money may not have any utility value. Happiness: theory id not applicable as it is a state of mind and not measurable. Some are very happy with little and some are not. Similarly Welfare -not applicable - the need for welfare is so large and types are different .
2016-03-27 05:47:39 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The additional utility, or happiness, derived from consuming one additional unit of a good.
2006-07-24 16:39:57 · answer #3 · answered by fcas80 7 · 0⤊ 0⤋
the additional utility brought on by the last unit consumed.
2006-07-24 16:40:32 · answer #4 · answered by browneyedgirl 6 · 0⤊ 0⤋