Marginal Utility

What Does Marginal Utility Mean?
The additional satisfaction a consumer gains from consuming one more unit of a good or service.

Investopedia explains Marginal Utility
For example, if you were really thirsty you'd get a certain amount of satisfaction from a glass of water. This satisfaction would probably decrease with the second glass, and then even more with the third glass. The additional amount of satisfaction that comes with each additional glass of water is marginal utility.

Related Terms

Bernoulli's Hypothesis
Demand Theory
Economics
Efficiency Principle
Expected Utility
Intertemporal Choice
Law of Diminishing Marginal Utility
Tax Wedge
Total Utility
Utility
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