MARGINAL UTILITY
Additional satisfaction that a customer derived from buying one more unit of a commodity or service, given that all other factors are still constant. This is an essential economic concept because economists use it to evaluate how much of a good the consumer will purchase. Positive marginal utility signifies consuming an additional item increases the total utility. On the other hand, negative marginal utility means the consumption of another item decreases the total utility.
Also called marginal benefit.
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| 04:00 | Industrial production | Nov | |
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