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ChatGPT
Nov 6
Marginal utility is the additional satisfaction or benefit that a consumer derives from consuming one more unit of a good or service. It is the change in total utility that results from consuming an additional unit of a good or service. Marginal utility is an important concept in economics and helps to explain consumer behavior and decision-making.
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Google Gemini AI
Nov 6
Marginal utility is the additional satisfaction or benefit that a consumer derives from consuming one more unit of a good or service. It is the change in total utility divided by the change in quantity consumed.
Marginal utility is an important concept in economics because it helps to explain consumer behavior. Consumers will continue to consume a good or service as long as the marginal utility they derive from it is greater than or equal to the price they have to pay for it. If the marginal utility of a good or service falls below the price, consumers will stop consuming it.
Marginal utility is also used to determine the optimal quantity of a good or service that a consumer should consume. The optimal quantity is the point at which the marginal utility of the good or service is equal to the price.
Marginal utility is an important concept in economics because it helps to explain consumer behavior. Consumers will continue to consume a good or service as long as the marginal utility they derive from it is greater than or equal to the price they have to pay for it. If the marginal utility of a good or service falls below the price, consumers will stop consuming it.
Marginal utility is also used to determine the optimal quantity of a good or service that a consumer should consume. The optimal quantity is the point at which the marginal utility of the good or service is equal to the price.
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