Examlex
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Optimal Consumption
The mix of goods and services purchased that maximizes the utility or satisfaction of a consumer given their budget constraint.
Marginal Utility
The additional pleasure a consumer experiences from acquiring another unit of a product or service.
Marginal Utility Per Dollar
The additional utility gained from spending one more dollar on a good or service.
Diminishing Marginal Utility
The principle stating that as a person consumes more of a good or service, the satisfaction gained from each additional unit decreases.
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