Economics Marginal Utility Questions
The concept of marginal utility of leisure refers to the additional satisfaction or utility gained from consuming an additional unit of leisure time. It is based on the idea that as individuals allocate more time to leisure activities, the initial units of leisure provide higher levels of satisfaction, but as more leisure time is consumed, the additional utility derived from each additional unit of leisure decreases. This concept helps explain how individuals make decisions regarding the trade-off between work and leisure, and how they allocate their time and resources to maximize their overall satisfaction or utility.