Marginal Utility Theory

In economics, the marginal utility of a good or service is the gain from an increase or loss from a decrease in the consumption of that good or service. Economists sometimes speak of a law of diminishing marginal utility, meaning that the first unit of consumption of a good or service yields more utility than the second and subsequent units, with a continuing reduction for greater amounts. The marginal decision rule states that a good or service should be consumed at a quantity at which the marginal utility is equal to the marginal cost.
Posts about Marginal Utility Theory
  • The Rise of the Content-Driven Organization: A Change in Marketers’ Focus

    … and content-driven organizations. Of course, a purely economical view (such as marginal utility theory, or that the consumer acts entirely rationally) is also falsified. Irrational consumer behavior, as cited in Dan Ariely’s book, Predictably Irrational, is to be expected. And, as marketers, we must equip ourselves to deal with this. Content enables…

    Andy Betts/ Relevancein Content- 24 readers -
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