The concept of the margin Flashcards
1
Q
What does thinking at the margin mean ?
A
Thinking of the effect of additional action
2
Q
What is the formula for marginal utility?
A
Marginal utility (X)=Total utility of(Xn+1)-Total utility of (Xn)
3
Q
When making decisions what can margins do ?
A
Increase productivity, Most important tasks are prioritised
4
Q
What is marginal utility?
A
Extra satisfaction gained from consuming one extra unit of the good
5
Q
What is Diminishing marginal utility?
A
Why the demand curve slopes down, consumer surplus generally declines with extra units consumed
