Learn how marginal utility theory explains the satisfaction consumers get from consuming extra units of a good. Find out how to measure utility , consumer surplus, allocative efficiency, and demand curve using marginal utility . Marginal utility and total utility maximization forms the foundation of the main consumer behavior models, and it underlies much of microeconomic theory. Marginal utility is a concept in economics that measures the satisfaction or benefit an individual derives from consuming an additional unit of a good or service. What is Marginal Utility ? Marginal Utility (or MU) is a concept in economics. It is a measure of additional satisfaction or benefits that a user gets from consuming one extra unit of a commodity or a service. Economists primarily use this concept to determine how many units a user could purchase of a particular item. MU isn’t constant; it can be positive, negative, or zero. MU is positive when the consumption of additional units increases the total utility . And MU is negative when ...
