Marginal utility is the added satisfaction that a consumer gets from having one more unit of a good or service. … Positive marginal utility occurs when the consumption of an additional item increases the total utility.
The main types of marginal utility include positive marginal utility, zero marginal utility, and negative marginal utility. Consumers often experience higher marginal utility when marginal cost is lower
.Consuming one candy bar may satisfy a person’s sweet tooth. If a second candy bar is consumed, the satisfaction of eating that second bar will be less than the satisfaction gained from eating the first. If a third is eaten, the satisfaction will be even less.
Marginal utility refers to additional utility obtained from the consumption of an additional unit of a commodity. To illustrate, if 10th unit yields satisfaction of 100 utils, while 11th unit yields satisfaction of 105 utils, then marginal utility derived from the 11 th unit is 5 utils.
