Economics

Marginal Utility

Marginal Utility

Marginal Utility is the additional satisfaction a buyer gains from consuming an additional unit of a great or service. Marginal utility can be an important economic concept because economists put it to use to determine how a lot of an item a buyer will buy. Positive marginal utility is when the consumption of an additional item boosts the total utility. Negative marginal utility is when the consumption of an additional item decreases the total utility.