UTILITY
Utility is an economic term introduced by daniel bernouli it refers a human satisfaction consumed from a product or service
UTILS
Utils is considered as measurable unit of utility
Marginal utility
Marginal utility means an additional satiafiaction of consumer gains from consuming
One more unit of good or service
Law of diminishing marginal utility
Law of diminishing marginal utility means the more you consume there is a decrease in marginal utility and increase in total utility
For example:- a boy started eating a pizza with a hungry for the first pizza his satisfaction is high where his marginal utility also high and next pizza his marginal utility decreses and increase in total utility and increase in total utility until saturation point reaches zero after that total utility goes on decreasing
No comments:
Post a Comment