What does the marginal utility of money mean?

Marginal utility refers to the minimum utility of the last consumption unit, that is, marginal unit. Austrian economist Meng Le, British economist jevons and French economist Walras put forward the theory of marginal utility value in 187 1- 1874, arguing that the value of a commodity depends on people's subjective evaluation of its utility.

When people consume a commodity, each additional unit will reduce the added utility; The last consumption unit has the least utility; What determines the value of a commodity is not its maximum utility or average utility, but its minimum utility. Meng Le's student and Austrian economist Vizer first called this minimum utility "marginal utility".

Extended data:

Marginal utility theorem

1, the theorem of diminishing desire or utility, that is, with the increase of the possession of goods, the desire of people or the utility of goods decreases.

2, the theorem of marginal utility equality, that is, in the case of limited goods, in order to satisfy people's desires to the greatest extent, these goods need to be properly distributed among various desires, so that people's various desires can be satisfied to the same extent.

3. When the original desire has been satisfied, the only way to get more enjoyment is to discover new enjoyment or expand old enjoyment.

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