Essay heading: A Basic Analysis Of The Balkan Economy In Relation To The E.U.

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Business

 

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December 11, 2001

 

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It has nothing to do with usefulness, it is a satisfaction based unit of measurement. Marginal utility on the other hand is, in a sense, an extra utility. What is meant in economic jargon by marginal is the additional pleasure a specific good gives to a consumer. Diminishing marginal utility is the marginal utility lessening due to the growth of consumption...
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For example, a consumer consumes a pound of fish, and his utility is 10 units, and his marginal utility is 10 units. If the same consumer consumed two pounds of fish, his utility would be 15, but his marginal utility would be 7. The same effect on marginal utility would take place if the amount consumed further increase...
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