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Please explain the concepts of total utility, marginal utility, and utility maximization. Define diminishing marginal utility and illustrate with two real-life examples - one for a business and one for an individual?
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The total utility of a quantity of a good to a consumer (measured in money terms) is the maximum amount of money that he or she is willing to give in exchange for it. Marginal Utility is defined as the change in total satisfaction as a result of consuming one additional unit of a specific good or service. Every person strives to maximize his ...
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