10 The concept of the margain Flashcards
1
Q
Utility
A
benefit gained from consuming a product
2
Q
Marginal Utility
A
benefit gained from consuming one more unit of product
3
Q
total Utility
A
total benefit gained from consuming a product
4
Q
diminishing marginal utility
A
gaining less marginal utility from each extra unit
5
Q
margin and demand curve
A
to encourage consumers to purchase more products, the price must fall to make up for the fact that the marginal utility from consumption is also falling
