Answer to Question #14640 in Microeconomics for jyoti prakash barick

Question

define marginal utility?

Answer 1

In economics, the marginal utility of a good or service is the gain (or loss) from an increase (or decrease) in the consumption of that good or service. Economists sometimes speak of a law of diminishing marginal utility, meaning that the first unit of consumption of a good or service yields more utility than the second and subsequent units.The marginal decision rule states that a good or service should be consumed at a quantity at which the marginal utility is equal to the marginal cost