The law of mariginal utility is the economic principle that states the decreasing of the additional satisfaction from the consumption of additional unit of the good or service. It is used in determining the optimal quantity of the good or service that consumer wishes to buy.
The formula for marginal utility is MU = ΔTU / ΔQ, where MU is marginal utility, ΔTU is the change in total utility, and ΔQ is the change in quantity consumed.
"Total Utility is an aggregate measure of satisfaction gained from consumption, whereas Marginal Utility is a measure of the change in satisfaction gained from consumption as a result of a change in consumption.
MU(x) = TU(x) – TU(x – 1)
The Marginal Utility gained from the xth unit of consumption is equal to the difference between the total utility gained from x units of consumption and the total utility gained from x–1 units of consumption."
---> https://corporatefinanceinstitute.com/resources/economics/law-of-diminishing-marginal-utility
---> https://en.wikipedia.org/wiki/Marginal_utility#Law_of_diminishing_marginal_utility
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