Economics Marginal Utility Questions
The concept of marginal utility of wealth refers to the additional satisfaction or utility that an individual derives from an incremental increase in their wealth or income. It suggests that as a person's wealth increases, the additional utility or satisfaction they gain from each additional unit of wealth decreases. This concept is based on the principle of diminishing marginal utility, which states that the more of a particular good or resource a person has, the less satisfaction they derive from each additional unit of that good or resource.