system of basing the price of a good on its usefulness to society.
usefulness of a good.
total consumer satisfaction received from consumption of a good.
usefulness of a theory to explain price determination.
a service such as sewer and water or electricity.
are motivated to maximize their profit.
are poor judges of what is best for them.
spend all of their current income.
usually save as much as possible of their income.
are motivated to maximize their utility.
change in total satisfaction caused by consumption of an additional unit of a good.
average utility of each unit of a good consumed.
inverse of the measure of total utility.
total satisfaction received from consumption of a good.
price paid for every unit consumed.
the paradox of value.
the utility theory of demand.
diminishing marginal utility.
diminishing total utility.
first unit of a good consumed will contribute most to the consumer's satisfaction.
last unit of a good consumed will contribute most to the consumer's satisfaction.
total utility is negative.
total utility is constant as more units are consumed.
marginal utility of a good diminishes over time.