Noun
(economics) the amount that utility increases with an increase of one unit of an economic good or service
Source: WordNetIt dispensed with the labour theory of value of which Smith was most famously identified with in classical economics, in favour of a marginal utility theory of value on the demand side and a more general theory of costs on the supply side. Source: Internet
Because the marginal rate of substitution of leisure for income is also the ratio of the marginal utility of leisure (MU L ) to the marginal utility of income (MU Y ), one can conclude: : where Y is total income and the right side is the wage rate. Source: Internet
Böhm-Bawerk also argued that the law of marginal utility necessarily implies the classical law of costs. Source: Internet
Consumers equalize the marginal utility (amount of satisfaction) of the last dollar spent on each good. Source: Internet
For the consumer, that point comes where marginal utility of a good, net of price, reaches zero, leaving no net gain from further consumption increases. Source: Internet
He believed that prices of goods and services are proportional to marginal utility rather than to labor amounts in free market. Source: Internet