Marginal utility, Microeconomics

Assignment Help:

Marginal utility 

- It is the measure of the additional satisfaction obtained from consuming one additional unit of good.

* Marginal Utility: An instance

- The marginal utility can be derived from increasing from 0 to 1 units of food may be 9

- Increasing from 1 to 2 may be 7

- Increasing from 2 to 3 may be 5

*  Observation: Marginal utility is getting diminished

* Diminishing Marginal Utility

- The principle of the diminishing marginal utility states that as more a good is used, using additional amounts will yield smaller additions to utility.

Relationship between Total and Marginal Utility

*  Diminishing Marginal Utility: An Example

1951_diminishing marginal utility.png

1443_marginal utility.png

708_marginal utility1.png


Related Discussions:- Marginal utility

PPC schedule, 1)The productive capability of an economy is such that to pro...

1)The productive capability of an economy is such that to produce 5 units of military good it takes 2 workers to be employed while 10 units of consumer goods require 3 workers. Res

Price mechanism, discuss the term of price mechanism,give examples to elabo...

discuss the term of price mechanism,give examples to elaborate the concept clearly

Which of the following statements is true?, Nonmetals tend to gain electron...

Nonmetals tend to gain electrons. A-Metals tend to lose electrons. B-Atoms have the natural tendency to C-fill their outermost shells. All of the above. D-

OLIGOPOLY, EXPLAIN KINKED DEMAND CURVE

EXPLAIN KINKED DEMAND CURVE

Time series, uses of time series in Indian Economy?

uses of time series in Indian Economy?

The economy is in the steady state, Assume in the Solow growth model that s...

Assume in the Solow growth model that s=.25, n=.02, d=.08, and f(k)=k^3. A)    Assume that z=2.  What is the steady state level of capital per worker and consumption per worker?

Healthcare economics, #quesExamine the expenditure trends over the last 40 ...

#quesExamine the expenditure trends over the last 40 years. What are the direction and magnitude of changes in spending in and between these various categories (with the exception

Participation in global system of production, Participation in Global Syste...

Participation in Global System of Production: As national economies are getting more inter-linked, the share of foreign components in most manufactured products is progressiv

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd