The additional satisfaction received from consuming an additional unit of a good is known as what?

The term that describes the additional satisfaction or pleasure gained from consuming one more unit of a good is known as marginal utility. This concept is fundamental in economics because it helps explain consumer behavior and consumption choices. As individuals consume more of a good, typically the marginal utility tends to decrease, which is known as the law of diminishing marginal utility. This principle indicates that while the first few units of a good may provide significant satisfaction, the added satisfaction from consuming further units may gradually decline. Understanding marginal utility is crucial for analyzing how consumers allocate their resources among different goods based on their preferences and the impact of price changes on their utility.