from tutorstips.com
Definition
Marginal utility is the additional perceived value or satisfaction a consumer attains due to purchasing or consuming one additional unit of a product. [1]
The Law of Diminishing Marginal Utility describes a situation in which consumption of an additional unit of a good adds less to total satisfaction or perceived value than the preceding unit.
See Also
Demand
Law of Diminishing Returns
References
- American Marketing Association, AMA Dictionary.