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7 Cards in this Set
- Front
- Back
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Utility
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the satisfaction or enjoyment a person obtains from consuming a good.
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Util
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A hypothetical unit use to measure how much utility a person obtains from consuming a good.
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Marginal Utility:
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The change in total utility a person derives from consuming an additional unit of a good.
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Total Utility
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the total number of utils a person derives from consuming a specific good.
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the utility a person receives from consuming each individual unit
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Marginal Utility
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The Law of Diminishing Marginal Utility
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The idea that has more of a good is consumed, the utility a person derives from each additional unity diminishes
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Under unconstrained situation, the totaly utility is maximized when
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MU=0
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