Marginal Utility and it's types

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Marginal Utility:-

Marginal utility is the additional utility or satisfaction that a consumer derives by consuming one more unit of a goods or services.


Types of Marginal Utility:-

There are three main types of marginal utility-

1- Positive Marginal Utility

2- Zero Marginal Utility

3- Negative Marginal Utility

1- Position Marginal Utility:-

Position marginal utility is happen when consumer gets additional happiness or joy by consuming one more of an item.

E.g.- A man is satisfied after drinking a glass of water but after drinking one more glass of water he gets extra satisfaction. Then, it is positive marginal utility.

2- Zero Marginal Utility:- 

Zero Marginal Utility is happen when consumer gets no additional satisfaction by consuming one more of an item.

E.g.- A man is approximately satisfied after drinking two glasses of water and after drinking one more glass of water there is no increase in satisfaction. Then, it is zero marginal utility.

3- Negative Marginal Utility:-

Negative Marginal Utility happen when consumer gets harm by consuming one more of an item.

E.g.- A man is completely satisfied after drinking three glasses of water and one more glass of water is harmful for him. Then, it is negative marginal utility.

Comments

  1. Unknown5 February 2021 at 11:56

    zero marginal utility is not defined well

    ReplyDelete
    Replies
    1. Unknown6 February 2021 at 00:58

      Please, if you can define zero marginal utility perfectly. Define it in the comment section it will help alot of more people. May be your language can describe it more clearly than mine.
      Thanks 🙏

      Delete

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