Glossary · Micro · Consumer theory

Marginal utility (MU)

The extra satisfaction from one more unit of a good. It usually falls as you consume more, a rule called diminishing marginal utility: the fourth piece of sushi pleases you less than the first.

Also called: MU, diminishing marginal utility

Taught in: Thinking at the Margin

Related terms

UtilityMarginal benefit (MB)Tangency condition

More from consumer theory

Axioms of consumer preferenceBudget lineCorner solutionEngel curveGiffen goodIndifference curveMarginal rate of substitution (MRS)Network effects

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