marginal utility
/ˌmɑːrdʒɪnəl juːˈtɪlɪti/
the additional satisfaction from consuming one more unit
marginal utility in a sentence
“Marginal utility typically decreases with consumption.”
Origin of marginal utility
From marginal (Latin margo edge) + utility
Related Words
diminishing returns
decreasing incremental output as input increases
pareto optimal
a state where no one can be made better off without making another worse off
revealed preference
inferring preferences from observed choices
time preference
the relative valuation of present versus future consumption
expected utility
the weighted average of utilities across possible outcomes
risk aversion
preference for certainty over gambles with equal expected value