marginal utility

marginal utility definition - business

marginal utility

The enjoyment or usefulness resulting from using or consuming one additional unit of something. Most products offer declining marginal utility. For example, on a hot day the first cold soft drink is likely to have a much higher marginal utility than the second soft drink. The same may not be true for beer.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.