Marginal utility refers to the additional satisfaction or benefit gained from consuming one more unit of a good or service.
Imagine you're eating pizza at a party. The first slice gives you great satisfaction (high marginal utility), but as you eat more slices, each additional slice brings less satisfaction (diminishing marginal utility).
Total Utility: Total utility is the overall amount of satisfaction obtained from consuming all units of a good or service.
Law of Diminishing Marginal Utility: This law states that as more units of a good are consumed, the additional satisfaction derived from each unit will eventually decrease.
Rational Consumer Choice: Rational consumer choice involves making decisions based on maximizing utility while considering factors like price and income constraints.
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