Social Sciences and History / Unit 13 SSH 1225 short lesson, about 20 seconds
Total Utility, Marginal Utility, Diminishing
Captions available
The idea
Households seek the highest utility, and each is the only judge of their own. Total utility is the satisfaction from a set of choices; marginal utility is the addition from one more unit. Each added unit adds less: diminishing marginal utility.
In practice
Marginal utility per dollar: MU divided by price.
Where people slip
Utility is each person's own judgment.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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