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A two-year-old has just figured out that the soft, furry, four-legged creatures that she loves so much are "cats." Her mental representation of this category is called a:
Marginal Utility
The additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a product or service.
Diminishing
A principle often seen where there is a decrease in the marginal (incremental) output of a production process as the amount of a single factor of production increases while others remain constant.
Donut
A fried dough confectionery or dessert food, usually sweet, and often served with a variety of toppings or fillings.
Total Utility
The total satisfaction received from consuming a particular quantity of a good or service.
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