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The model and its assumptions

The model and its assumptions

Marginal utility theory explains consumer choice by assuming that each additional unit consumed provides marginal utility. A rational consumer is expected to allocate spending so that the marginal utility gained per pound is equal across goods.

7.1.5 limitations of marginal utility theory and its assumptions of rational behaviour Lesson

  1. Intl A Level
  2. /Economics
  3. /7.1.5 limitations of marginal utility theory and its assumptions of rational behaviour

Step-by-step lessons on CIE Intl A Level Economics 7.1.5 limitations of marginal utility theory and its assumptions of rational behaviour. Each one builds up to exam-style questions.

Lessons