In economics, utility is the satisfaction or benefit derived by consuming a product; thus the marginal utility of a good or service describes how much pleasure or satisfaction is gained from an increase in consumption. It may be positive, negative, or zero.

What is marginal utility in simple words?

Marginal utility is the added satisfaction that 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.

What does marginal utility mean example?

Marginal utility, then, is the change in total utility from consuming one more or one less of an item. For example, the marginal utility of a third slice of pizza is the change in satisfaction one gets when eating the third slice instead of stopping with two.