Richard BF

Marginal Utility

“In economics, the marginal utility of a good or of a service is the utility of the specific use to which an agent would put a given increase in that good or service, or of the specific use that would be abandoned in response to a given decrease. In other words, marginal utility is the utility of the marginal use — which, on the assumption of economic rationality, would be the least urgent use of the good or service, from the best feasible combination of actions in which its use is included. Under the mainstream assumptions, the marginal utility of a good or service is the posited quantified change in utility obtained by increasing or by decreasing use of that good or service.”