BIOCH498 Lecture Notes - Lecture 16: Vale Limited, Intellectual Property, De Beers
13 Jun 2015
School
Department
Course
Professor
Document Summary
The satisfaction, happiness or need fulfillment a consumer receives from the consumption of a good or service. Marginal utility: the change in utility that results from an incremental change in quantity. The law of diminishing marginal utility: the greater is the amount consumed of a good or services, the smaller is the increase in utility from the next unit consumed. Marginal utility is the slope of the utililty curve. The consumer"s objective: the consumer wants to maximize her/his utility, subject tomu his/her level of income. Subject to: i = p1q1 + p2q2 + . Consumer equilibrium occurs when the rate at which the consumer trades one good for another equals the rate at which the market is willing to trade one good for another. = additional happiness derived by spending one more dollar on good a. Po buy more good a and less good b. When you buy more a mua . When you buy more b mub .
