How to understand marginal utility?

In microeconomics, marginal utility, also translated as marginal effect, refers to the utility of increasing (or decreasing) the income of goods or services for every unit of goods or services, that is, the slope of the "utility-quantity of goods or services" diagram.

Economics usually thinks that with the increase of the quantity of goods or services, the marginal utility will gradually decrease, which is the so-called law of diminishing marginal effect.

It should be noted here that marginal utility refers to the degree of satisfaction increased by each unit consumed by an item, which is aimed at consumers; On the other hand, marginal income corresponds to producers. Similarly, with the increase of the quantity of goods or services, the marginal revenue will gradually decrease, which is the so-called law of diminishing marginal revenue.

Hypothesis of cardinal utility theory:

1, the utility can be measured concretely.

2. Law of diminishing marginal utility (MU).