Definitions
There is 1 meaning of the phrase
Marginal Utility.
Marginal Utility - as a noun
(economics) the amount that utility increases with an increase of one unit of an economic good or service
Example Sentences
"As a consumer consumes more units of a product, the marginal utility of each additional unit tends to decrease."
"Economists use the concept of marginal utility to analyze consumer behavior and demand."
"The law of diminishing marginal utility states that as a person consumes more of a product, the marginal utility decreases."
"For example, the marginal utility of the first slice of pizza may be high, but the marginal utility of the tenth slice will be much lower."
"When making purchasing decisions, consumers often consider the marginal utility of a product in relation to its price."
