Live revision! Join us for our free exam revision livestreams Watch now

Topics

Marginal utility

In economics, utility refers to the benefits (satisfaction or happiness) consumers derive from a good, and it can be measured based on individuals’ choices between alternatives or preferences revealed in their willingness to pay. Marginal utility is the change in total utility from consuming an extra unit of a product.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.