Marginal concepts

change in satisfaction resulting from an increase or decrease in consumption of one unit of a good or service

factor in economics

Marginalism is a theory of economics that attempts to explain the discrepancy in the value of goods and services by reference to their secondary, or marginal, utility. It states that the reason why the price of diamonds is higher than that of water, for example, owes to the greater additional satisfaction of the diamonds over the water. Thus, while the water has greater total utility, the diamond has greater marginal utility.

term used in microeconomics

metric in economics

rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility

change in output resulting from employing one more unit of a particular input, keeping other input quantities constant

Laws about marginal utility in economics

fraction of income increase that is saved

slope of the isoquant; amount by which the quantity of one input has to be reduced when one extra unit of another input is used, so that output remains constant

concepts related to marginal effects

economics theory

model of wage levels

method of profit maximization

the marginal cost of reducing pollution