Meaning & use
marginal utility
Last updated
Meaning
noununcountabletechnical
The extra benefit or satisfaction you get from having one more unit of something.
Grammar: Usually uncountable: diminishing marginal utility.
Patterns
- marginal utility of something
The marginal utility of a second slice of cake is lower than the first.
Economists study the marginal utility of income.
As you buy more, the marginal utility of each unit falls.
Common combinations
- diminishing marginal utility
- Diminishing marginal utility explains why extra units bring less joy.
- marginal utility of
- The marginal utility of money is lower for the rich.
- decreasing marginal utility
- There is decreasing marginal utility after the fifth cup.
- equalize marginal utility
- Consumers try to equalize marginal utility per dollar.
Synonyms and how they differ
- extra benefit
- A plain-language phrase, less precise than the economic term.
- incremental value
- Incremental value is used in business to mean added worth per additional unit.
Opposites
Word family
Commonly confused: marginal utility or total utility?
marginal utility vs total utility
Total utility is satisfaction from all units; marginal utility is from the last one only.
Practice
A hungry person enjoys a first sandwich greatly but the fourth much less. This illustrates diminishing ____.
Choose one answer.
Falling satisfaction from each extra unit is diminishing marginal utility. The other terms concern sellers or costs.
Make it your own
Write a sentence using “marginal utility”, then check it and compare it with the examples above.