Can Somone explain Marginal Utility

I got a C on my econ midterm. I have always sucked at economics, but if I had gotten the problem on MU correct, I could have gotten a B. I can't link the problem, its on Adobe Photoshop. So if someone could explain the basic concepts, I would be grateful.

[Paluka]

Marginal utility is how much x+1 thing pleases you more than just having x things. Marginal utility is not constant for all x, and usually diminishes as x grows larger.

ask your professor. you'll learn, and maybe get a better grade on your exam

[handsome]

First of all, utility is basically another word for happiness. "Marginal" refers to the change of having additional units of something, whether it's utility, benefit or cost. You definitely need to get this down quick if you plan on taking other econ classes.

i.e. Let's say you derive 10 units of utility from one hamburger. The first hamburger is usually the best because it satisfies your initial hunger. But if you eat two hamburgers, you derive 16 units of utility. The difference between the two (6 units of utility) is the marginal utility of the second hamburger. I hope you get this. Good luck

[deacsoft]

MU=^U/Q^~=dU/dQ

[Patrick del Poker Grande]

You haven't read TPFAP?

[jakethebake]

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Can Somone explain Marginal Utility

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Your prof or TA probably can.

[xadrez]

Can someone elucidate [censored]'s marginal utility in banning dumb homework posters?

[Patrick del Poker Grande]

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Can someone elucidate [censored]'s marginal utility in banning dumb homework posters?

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The problem here isn't the content so much as the lack of bonus content.

A dollar is worth more to a bum than to Bill Gates.

[Patrick del Poker Grande]

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A hooker is worth more to Michael Davis than to Hugh Hefner.

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[J_V]

Marginal Utility is the derivative of Utility. Essentitally its the rate of change of the curve at a specific point.

[A_PLUS]

Utility, just means good. It is always a good thing, more is always better, etc. You can think of it as happiness, whatever.

Marginal Utility:
First off, you always have to think of Utility in terms of something else. Like money for example.

So, we know more money in better than less, so the utility of having 1000$ is higher than the Utility of having 100$.

When you have 2$, gaining another dollar may increase your Utility alot.

When you have $10,000, gaining another dollar may increase your Utility by a very small amount.

That is the essense of marginal utility. If you increase your good (money in this case), by a very small increment, how much does utility go up or down?

Generally, in econ, they talk about decreasing marginal Utility. That is saying that the more your have of something (money), the less happiness you gain by be given a small amount more.

1$ means more to someone with 2$, than someone with 10,000$.


Hope that helps, if you have any specfic questions, you can PM me.

[CrazyEyez]

Increasing marginal utility:
beat up a short guy --> money shot --> golden shower