The law of diminishing marginal utility states that marginal utility decreases when you consume one more good. Marginal utility is a measure of the extra satisfaction (benefit or utility) you get when you add another consumption of goods or
Utility
Utility Function: Why It Matters, How It Works
Utility function is a mathematical representation of the satisfaction (utility) of consumption of a basket of goods. The function translates each bundle of products and services into an unit (utils). Why is the utility function important? The