BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Marginal utility is the incremental increase in utility that results from the consumption of one additional unit. “Utility” is an economic term used to represent satisfaction or happiness.

Detailed explanation-2: -Positive marginal utility occurs when the consumption of an additional item increases the total utility. On the other hand, negative marginal utility occurs when the consumption of one more unit decreases the overall utility.

Detailed explanation-3: -Total utility operates hand in hand with marginal utility, which measures the additional satisfaction received from the consumption of a good or service. As long as marginal utility is positive, total utility will increase. Once marginal utility is negative, then total utility will decrease.

Detailed explanation-4: -marginal utility, in economics, the additional satisfaction or benefit (utility) that a consumer derives from buying an additional unit of a commodity or service.

Detailed explanation-5: -Diminishing marginal utility refers to the phenomenon that each additional unit of gain leads to an ever-smaller increase in subjective value. For example, three bites of candy are better than two bites, but the twentieth bite does not add much to the experience beyond the nineteenth (and could even make it worse).