Learn the key differences between marginal utility and marginal value, how they impact decision-making, and why understanding ...

Learn how changes in income impact satisfaction and understand the principles behind the marginal utility of income in modern economies.

The Marginal Utility of a good is the increase in total utility obtained by consuming one more unit of that good, for given consumption of other goods.

Marginal utility helps set product pricing; high initial satisfaction decreases with more units. Some stores use bulk pricing when consumers value additional items less. Progressive taxes assume each ...