Marginal Utility Theory Flashcards
1
Q
What does the word marginal mean?
A
To add an extra one/additional
2
Q
What does Marginal Cost mean?
A
Cost of making an extra product
3
Q
What does Marginal Revenue mean?
A
Money made from an additional product.
4
Q
What does Marginal Utility mean?
A
Is the satisfaction from consuming an extra unit.
5
Q
What does Total Utility mean?
A
Total satisfaction from a given level of consumption
6
Q
What happens to the utility if we consume more of a product?
A
The utility gained from the additional units decreases.
