MFinance glossary

Marginal Utility

Quick definition

The additional satisfaction from a good or service.

Overview

Marginal utility is the economic concept that measures the extra satisfaction gained from consuming one additional unit of a good or service.

Common uses

  • Consumption analysis
  • Pricing strategy
  • Optimising the offering

Examples of use in small businesses

  • Adjusting stock levels
  • Setting prices
  • Studying customer preferences
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