Utility is the satisfaction gained from consuming a good or service
What is utility?
Utility is the satisfaction gained from consuming a good or service
What is marginal utility?:
Marginal utility is the additional satisfaction gained from consuming one extra unit of a good
What is marginal utility?
Marginal utility is the additional satisfaction gained from consuming one extraunit of a good
Hypothesis of diminishing marginal utility:
As a person increases consumption of a good while keeping consumption of other products constant there is a decline in the marginalutility derived from consuming each additionalunit of a good
hypothesis of diminishing marginal utility supports a downward sloping demand curve
What is does the hypothesis marginal utility support?
downward slopingdemand curve
When marginal utility is zero, total utility is maximised. This is the point of satiation
