MARGINAL UTILITY: The additional utility, or satisfaction of wants and needs, obtained from the consumption or use of an additional unit of a good. It is specified as the change in total utility divided by the change in quantity. Marginal utility indicates what each additional unit of a good is worth to a consumer. See also | utility | satisfaction | consumption | total utility | quantity | marginal analysis | law of demand | consumer demand theory | law of diminishing marginal utility | marginal utility and demand | demand price | diamond-water paradox |
