Examlex
A rat learns to climb a ladder to a platform where it can pull a string to raise the ladder and then climb the ladder again. The reinforcement for each response is the opportunity to perform the next response. This procedure is known as
Marginal Utility
The change in total utility a person receives from consuming an additional unit of a good or service.
Utility Function
A mathematical representation that ranks an individual's preferences over a set of goods and services, based on the level of satisfaction or utility derived.
Optimal Utility Rule
A principle in consumer theory stating that consumers allocate their income in a way that maximizes their total utility, given their budget constraint.
Indifference Curve
A graph representing combinations of goods or services among which a consumer is indifferent, showing the same level of utility for each point along the curve.
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