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Marginal Utility Explained by spectrumecons

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threespeak · @spectrumecons · (edited)
$17.17
Marginal Utility Explained
<center>[![](https://img.3speakcontent.online/mzhtknte/post.png)](https://3speak.online/watch?v=spectrumecons/mzhtknte)</center>

<center>▶️ [Watch on 3Speak](https://3speak.online/watch?v=spectrumecons/mzhtknte)</center>

---

Hi Everyone,

This post contains a video which is a follow up to my written post <a href="https://steemit.com/economics/@spectrumecons/economic-concepts-10-marginal-utility" rel="nofollow noopener">Economic Concepts #10 – Marginal Utility</a>. I recommend that you read this post as well as watch the video.

## YouTube Version

https://www.youtube.com/watch?v=sPAwJ_8NFf8

Just in case, the 3Speak version becomes unavailable at some point. I have also uploaded the video to YouTube.

## Summary of video

-------

This video consists of three key areas. The video defines and explains marginal utility. The video explains how utility diminishes with consumption. The video considers how marginal utility differs depending on the consumption of substitutes and/or complementary goods.

### Marginal Utility Definition

------

>Marginal utility is the additional utility (i.e. satisfaction) obtained from each unit of a good or service consumed. 

--------

I have presented videos that discuss utility. In this video, my focus is on one very important aspect of utility. Utility has a tendency to decrease as more of something is consumed. A very simple example of this is food. Imagine you like burgers and you are very hungry. The first burger you eat will be very satisfying. After eating a couple of burgers, you will start to feel quite full. If you are to eat a third or fourth burger, you will feel far less satisfied as you start to become bloated. You may even turn down a free burger.

![Sofa_SUB.jpg](https://files.steempeak.com/file/steempeak/spectrumecons/0XvslH5S-Sofa_SUB.jpg)

Substitutes and complementary goods greatly affect the extent of diminishing marginal utility. For example, furniture. A house can only hold so much furniture. Imagine your lounge can comfortably fit either four armchairs, two armchairs and a sofa, or two sofas. If you buy a sofa, you could buy another sofa or you could buy two armchairs. If you choose to buy two armchairs, the utility from obtaining a second sofa falls greatly, as the sofa no longer fits in the lounge as you have met your seating needs. In this case, the armchairs are substitutes to the acquisition of a second sofa. However, sofas and armchairs are often sold together as lounge sets. Therefore, in lower quantities they are often considered as complements. Which goods and services are considered complements and substitutes is not always straightforward.

![Remotes_Batteries.jpg](https://files.steempeak.com/file/steempeak/spectrumecons/jELjAwD9-Remotes_Batteries.jpg)

In regards to complements, acquiring a complement can reduce the extent of the reduction in marginal utility of obtaining more of something. For example, battery operated devices require batteries. If a person has two devices that require two batteries each. The marginal utility of obtaining the fifth or sixth battery is lower than the marginal utility of obtaining the second or third battery. If that person acquires another device that requires batteries, the utility of obtaining the fifth and sixth battery becomes higher.

## More posts

<center>![MORE_POSTS_GIF.gif](https://cdn.steemitimages.com/DQmXaqXVQn9vn7kmcHZeUBob6jBFiWKWeipjVA43dRp9hQZ/MORE_POSTS_GIF.gif)</a></center>

If you want to read any of my other posts, you can click on the links below. These links will lead you to posts containing my collection of works. These posts will be updated frequently. 

<a href="https://steemit.com/archive/@spectrumecons/collection-of-works-part-1" rel="nofollow noopener">![Collection_1.jpg](https://cdn.steemitimages.com/DQmSVgaUQJzPaWkpfo5dpSpEaa5Vg4BHJURXEr4LKYb1z5p/Collection_1.jpg)</a>

<a href="https://steemit.com/archive/@spectrumecons/collection-of-works-part-2" rel="nofollow noopener">![Collection_2.jpg](https://cdn.steemitimages.com/DQmc9QeBeMRNQsWUXTtLLL6ZAJKVyxDXjgYkB8PELua1xa5/Collection_2.jpg)</a>

<a href="https://steemit.com/archive/@spectrumecons/collection-of-works-part-3" rel="nofollow noopener">![Collection_3.jpg](https://cdn.steemitimages.com/DQmVP5PfaDtwBS2V5JUsg2pVDxG8YrUoGKvp4imQ1P1QXRQ/Collection_3.jpg)</a>

## New Economics Udemy Course

<center><a href="https://www.udemy.com/economics-is-for-everyone/" rel="nofollow noopener">![Course_Image.jpg](https://cdn.steemitimages.com/DQmTdenejAWamJeA6JaHdmZwJJE1e4ezbVbogqtbzYJnrGK/Course_Image.jpg)</a></center>

I have launched my first Udemy course ‘Economics is for Everyone’. The course focuses on how economics affects everyday people, the decisions they make and how they interact with the world around them. The course contains 24 video lectures (about 4 hours of viewing), 64 multiple-choice questions (3 at the end of most lectures), 32 downloadable resources (presentation slides, additional notes and links to relevant Steem posts), and 2 scenario questions. The course is currently free-of-charge. Click the link above to access the course.

-------

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# Steem - The Future of DApps

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---

▶️ [3Speak](https://3speak.online/watch?v=spectrumecons/mzhtknte)
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I have also uploaded the video to YouTube.\n\n## Summary of video\n\n-------\n\nThis video consists of three key areas. The video defines and explains marginal utility. The video explains how utility diminishes with consumption. The video considers how marginal utility differs depending on the consumption of substitutes and/or complementary goods.\n\n### Marginal Utility Definition\n\n------\n\n>Marginal utility is the additional utility (i.e. satisfaction) obtained from each unit of a good or service consumed. \n\n--------\n\nI have presented videos that discuss utility. In this video, my focus is on one very important aspect of utility. Utility has a tendency to decrease as more of something is consumed. A very simple example of this is food. Imagine you like burgers and you are very hungry. The first burger you eat will be very satisfying. After eating a couple of burgers, you will start to feel quite full. If you are to eat a third or fourth burger, you will feel far less satisfied as you start to become bloated. You may even turn down a free burger.\n\n![Sofa_SUB.jpg](https://files.steempeak.com/file/steempeak/spectrumecons/0XvslH5S-Sofa_SUB.jpg)\n\nSubstitutes and complementary goods greatly affect the extent of diminishing marginal utility. For example, furniture. A house can only hold so much furniture. Imagine your lounge can comfortably fit either four armchairs, two armchairs and a sofa, or two sofas. If you buy a sofa, you could buy another sofa or you could buy two armchairs. If you choose to buy two armchairs, the utility from obtaining a second sofa falls greatly, as the sofa no longer fits in the lounge as you have met your seating needs. In this case, the armchairs are substitutes to the acquisition of a second sofa. However, sofas and armchairs are often sold together as lounge sets. Therefore, in lower quantities they are often considered as complements. Which goods and services are considered complements and substitutes is not always straightforward.\n\n![Remotes_Batteries.jpg](https://files.steempeak.com/file/steempeak/spectrumecons/jELjAwD9-Remotes_Batteries.jpg)\n\nIn regards to complements, acquiring a complement can reduce the extent of the reduction in marginal utility of obtaining more of something. For example, battery operated devices require batteries. If a person has two devices that require two batteries each. The marginal utility of obtaining the fifth or sixth battery is lower than the marginal utility of obtaining the second or third battery. If that person acquires another device that requires batteries, the utility of obtaining the fifth and sixth battery becomes higher.\n\n## More posts\n\n<center>![MORE_POSTS_GIF.gif](https://cdn.steemitimages.com/DQmXaqXVQn9vn7kmcHZeUBob6jBFiWKWeipjVA43dRp9hQZ/MORE_POSTS_GIF.gif)</a></center>\n\nIf you want to read any of my other posts, you can click on the links below. These links will lead you to posts containing my collection of works. These posts will be updated frequently. \n\n<a href=\"https://steemit.com/archive/@spectrumecons/collection-of-works-part-1\" rel=\"nofollow noopener\">![Collection_1.jpg](https://cdn.steemitimages.com/DQmSVgaUQJzPaWkpfo5dpSpEaa5Vg4BHJURXEr4LKYb1z5p/Collection_1.jpg)</a>\n\n<a href=\"https://steemit.com/archive/@spectrumecons/collection-of-works-part-2\" rel=\"nofollow noopener\">![Collection_2.jpg](https://cdn.steemitimages.com/DQmc9QeBeMRNQsWUXTtLLL6ZAJKVyxDXjgYkB8PELua1xa5/Collection_2.jpg)</a>\n\n<a href=\"https://steemit.com/archive/@spectrumecons/collection-of-works-part-3\" rel=\"nofollow noopener\">![Collection_3.jpg](https://cdn.steemitimages.com/DQmVP5PfaDtwBS2V5JUsg2pVDxG8YrUoGKvp4imQ1P1QXRQ/Collection_3.jpg)</a>\n\n## New Economics Udemy Course\n\n<center><a href=\"https://www.udemy.com/economics-is-for-everyone/\" rel=\"nofollow noopener\">![Course_Image.jpg](https://cdn.steemitimages.com/DQmTdenejAWamJeA6JaHdmZwJJE1e4ezbVbogqtbzYJnrGK/Course_Image.jpg)</a></center>\n\nI have launched my first Udemy course ‘Economics is for Everyone’. The course focuses on how economics affects everyday people, the decisions they make and how they interact with the world around them. The course contains 24 video lectures (about 4 hours of viewing), 64 multiple-choice questions (3 at the end of most lectures), 32 downloadable resources (presentation slides, additional notes and links to relevant Steem posts), and 2 scenario questions. The course is currently free-of-charge. Click the link above to access the course.\n\n-------\n\n<center>[![](https://steemitimages.com/1500x1000/http://steemitboard.com/@spectrumecons/sc_verified.png)](http://steemitboard.com/@spectrumecons)[![level.png](https://cdn.steemitimages.com/DQmX7frpXmpXSWg2nigkzRTZBpWvPKYnUbTdppsqUNoMqdp/level.png)](http://steemitboard.com/@spectrumecons) [![](https://steemitimages.com/1500x1000/https://steemitboard.com/@spectrumecons/topcommentedday.png)](http://steemitboard.com/@spectrumecons)</center></a>\n\n<center><a href=\"https://steemit.com/@spectrumecons\" rel=\"nofollow noopener\">![Brand2018.gif](https://steemitimages.com/DQmZZ5EMRV4VVX3xin5HX4veGLWPoehqaEoxdoJjGXFEk16/Brand2018.gif)</center>\n\n# Steem - The Future of DApps\n\n<center>![DAppsVID.gif](https://cdn.steemitimages.com/DQmRG39x7oNhbC99bq4fErt6oxovAKH72Ev3hMFUt3kNEsv/DAppsVID.gif)</center></a>","tags":["economics","utility","palnet","stem"]}},"image":["https://img.3speakcontent.online/mzhtknte/post.png","https://files.steempeak.com/file/steempeak/spectrumecons/0XvslH5S-Sofa_SUB.jpg","https://files.steempeak.com/file/steempeak/spectrumecons/jELjAwD9-Remotes_Batteries.jpg","https://cdn.steemitimages.com/DQmXaqXVQn9vn7kmcHZeUBob6jBFiWKWeipjVA43dRp9hQZ/MORE_POSTS_GIF.gif","https://cdn.steemitimages.com/DQmSVgaUQJzPaWkpfo5dpSpEaa5Vg4BHJURXEr4LKYb1z5p/Collection_1.jpg","https://cdn.steemitimages.com/DQmc9QeBeMRNQsWUXTtLLL6ZAJKVyxDXjgYkB8PELua1xa5/Collection_2.jpg","https://cdn.steemitimages.com/DQmVP5PfaDtwBS2V5JUsg2pVDxG8YrUoGKvp4imQ1P1QXRQ/Collection_3.jpg","https://cdn.steemitimages.com/DQmTdenejAWamJeA6JaHdmZwJJE1e4ezbVbogqtbzYJnrGK/Course_Image.jpg","https://steemitimages.com/1500x1000/http://steemitboard.com/@spectrumecons/sc_verified.png","https://cdn.steemitimages.com/DQmX7frpXmpXSWg2nigkzRTZBpWvPKYnUbTdppsqUNoMqdp/level.png","https://steemitimages.com/1500x1000/https://steemitboard.com/@spectrumecons/topcommentedday.png","https://steemitimages.com/DQmZZ5EMRV4VVX3xin5HX4veGLWPoehqaEoxdoJjGXFEk16/Brand2018.gif","https://cdn.steemitimages.com/DQmRG39x7oNhbC99bq4fErt6oxovAKH72Ev3hMFUt3kNEsv/DAppsVID.gif"],"format":"markdown","users":["spectrumecons"],"links":["https://3speak.online/watch?v=spectrumecons/mzhtknte","https://3speak.online/watch?v=spectrumecons/mzhtknte","/economics/@spectrumecons/economic-concepts-10-marginal-utility","/archive/@spectrumecons/collection-of-works-part-1","/archive/@spectrumecons/collection-of-works-part-2","/archive/@spectrumecons/collection-of-works-part-3","https://www.udemy.com/economics-is-for-everyone/","http://steemitboard.com/@spectrumecons","http://steemitboard.com/@spectrumecons","http://steemitboard.com/@spectrumecons"]}"
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vote details (129)
@healthdear · 
great video mate for explaining marginal utility in simple terms, else its difficult to understand it in pure financial words. Thanks.
👍  ,
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vote details (2)
@spectrumecons · 
No problem, I'm glad you liked it.
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@ocupation · 
that's actually pretty good explanation. 

> *Utility has a tendency to decrease as more of something is consumed*.

Makes total sense, although i haven't thought of it that way.

Will take a look at your Course as soon as i catch some time.
👍  
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@spectrumecons ·
$0.30
There is a limit to how much satisfaction money can get anyone. That's another reason I consider time a more important resource than money.

Posted using [Partiko Android](https://partiko.app/referral/spectrumecons)
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@steem-plus ·
SteemPlus upvote
Hi, @spectrumecons!

You just got a **1.18%** upvote from SteemPlus!
To get higher upvotes, earn more SteemPlus Points (SPP). On your Steemit wallet, check your SPP balance and click on "How to earn SPP?" to find out all the ways to earn.
If you're not using SteemPlus yet, please check our last posts in [here](https://steemit.com/@steem-plus) to see the many ways in which SteemPlus can improve your Steem experience on Steemit and Busy.
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@steem-ua · 
#### Hi @spectrumecons!

Your post was upvoted by @steem-ua, new Steem dApp, using UserAuthority for algorithmic post curation!
Your **UA** account score is currently 4.804 which ranks you at **#1453** across all Steem accounts.
Your rank has not changed in the last three days.

In our last Algorithmic Curation Round, consisting of 94 contributions, your post is ranked at **#12**.
##### Evaluation of your UA score:

* Some people are already following you, keep going!
* The readers like your work!
* Try to work on user engagement: the more people that interact with you via the comments, the higher your UA score!


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@tonytrillions · 
Diminishing marginal utility Is actually pretty deep. 
Tells you that you can never really be satisfied. 
The more you consume something, the more it will become unsatisfying.

Posted using [Partiko Android](https://partiko.app/referral/tonytrillions)
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@spectrumecons · 
We can be satisfied to a point with something but nothing is infinite. I think a way to get more satisfaction in life is to have more variety and different experiences.
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