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August 16, 2012
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For instance, a consumer, being aware of a certain need and believing a certain good category satisfies it, might fix a maximum price he/she can afford and search for the best good available under such a constraint.
The marginal utility of a good or service is its utility in its least urgent use of the most-desired available uses, in other words, the use that is just in the margin...
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The same object may have different marginal utilities for different people.
Law of Diminishing Marginal Utility:
The "Law of Diminishing Marginal Utility" states that for any good or service, the marginal utility of that good or service decreases as the quantity of the good increases, ceteris paribus...
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