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Average utility

Average utility ( AU , English Average Utility ) is the ratio of the total utility to the number of units of benefit consumed [1] .

The relationship between average and marginal utility

Comparing the average and marginal utility, one can find the tendency of the average utility to “strive” for marginal utility. Namely, the average utility value increases (with increasing consumption ), if it is below the marginal utility; the average value of the utility remains constant (with a change in consumption), if it is equal to the value of the marginal utility; the average value of utility decreases (with increasing consumption), if it exceeds the marginal utility. [2]

Notes

  1. ↑ The theory of marginal utility - Economics. Knowledge is here!
  2. ↑ Limit analysis and the concept of elasticity in the theory of consumption (inaccessible link)


Source - https://ru.wikipedia.org/w/index.php?title=Average_oldind10010022653


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Clever Geek | 2019