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Marginal Utility

   Also found in: Dictionary/thesaurus, Acronyms, Encyclopedia, Wikipedia 0.01 sec.
Marginal utility
The change in total satisfaction as a result of consuming one additional unit of a specific good or service.

Marginal Utility
In economics, the level of satisfaction a person derives from a good or service. Marginal utility is inherently subjective and thus difficult to measure, but it is important to determining how much supply of a product the market can handle without diminishing demand. Historically, it has been thought that one can quantify the marginal utility of each unit, but some economists disagree with this. See also: Austrian school, Law of Diminishing Marginal Utility.


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Some have collective shocks to the marginal utility of leisure.
Here the clear implication is that we are too far out on a marginal utility curve: The increase in benefit from the most recent increases in incarceration is not worth the cost.
Al-Shaybani, for example, discussed the issue of consumption behaviour and touched on the idea of what nowadays in economics is called the law of diminishing marginal utility.
 
 
 
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