peel.
the organic banana
Booh-yah!
All right, let's roll.
Carl Menger was the founder of the Austrian School of economics, famous for contributing to the development of the theory of marginal utility. What is marginal utility, you ask?
First off, utility represents the satisfaction or benefit that an individual gains from consuming a given amount of goods or services. The amount of a person’s total utility corresponds to the person’s level of consumption. Usually, the more the person consumes, the larger his or her total utility will be. Marginal utility is the additional satisfaction, or amount of utility, gained from each extra unit of consumption.
Although total utility usually increases as more of a good is consumed, marginal utility usually decreases with each additional increase in the consumption of a good. This decrease demonstrates the law of diminishing marginal utility. Because there is a certain threshold of satisfaction, the consumer will no longer receive the same pleasure from consumption once that threshold is crossed. In other words, total utility will increase at a slower pace as an individual increases the quantity consumed.
As Biggie would say, “Mo’ money, mo’ problems”. Carl Menger would have undoubtedly agreed.
