Economics Year 1 - pre mock

• ​Marginal utility is the added satisfaction a consumer gets from having one more unit of a good or service.

• The concept of marginal utility is used by economists to determine how much of an item consumers are willing to purchase.

• Marginal utility can be positive, zero, or negative

>> Positive marginal utility occurs when the consumption of an additional item increases the total utility. Negative marginal utility occurs when the consumption of one more unit decreases the overall utility.

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