AP MicroeconomicsConsumer Choice
Marginal Utility
Marginal utility is the additional satisfaction gained from consuming one more unit of a good.
It typically falls as you consume more of a good, a pattern called diminishing marginal utility. Consumers compare marginal utility per dollar across goods to allocate spending. When marginal utility is negative, consuming more actually reduces total utility.
Formula / Example
MU = ΔTotal Utility ÷ ΔQuantity consumed.