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Unformatted text preview: a. Economist in the 1890’s b. British c. Tried to use the idea of Utils (a way to measure satisfaction) 4. Present a. Measure satisfaction by your willingness to pay ii. Language 1. Willingness to pay 2. Marginal utility a. The level of additional satisfaction gained from the consumption of an additional unit of a good or service. b. What is the additional satisfaction generated by the last unit of consumption? 3. Total Utility a. Indicates the overall satisfaction gained from the consumption of a collection of goods measured by a cumulative willingness to pay. iii. Thought experiment iv. Net marginal utility....
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- Spring '08