Discuss the impacts of marginal utility - 275 Words

Discuss the Impacts of Marginal Utility (Essay Sample) Content: Discussion 10 ResponsesNameInstitutional affiliationMarginal utility refers to the additional satisfaction a consumer gains from consuming an extra unit of good or service. One of the easiest ways of measuring utility is through giving utility a monetary value by equating it to the price relative to the commodity. With this method, it becomes easier to measure the utility a customer gets from consuming a particular good or service and subsequently the marginal utility.Response 1Bearing this in mind, in the first response, the argument put across is valid and true. Given two commodities at the same price, the utility is purely based on the customerà ¢Ã¢â€š ¬s preferences and tastes. However, this is more clearly brought out by comparing two commodities at the same price. A good example is, say, the price of soda and fresh juice is the same. In this case, the utility derived from consuming a unit of either commodity is purely based on the customerà ¢Ã¢â€š ¬s preferenc e. However, this is only valid if the utility of consuming the unit commodity is greater than that obtained from consuming the alternative commodity. In this case, there is little that can be done to increase marginal utility as it is based on the customerà ¢Ã¢â€š ¬s prefe...