Results for “welfare economics”

Utilitarianism

Utilitarianism is a consequentialist ethical theory that judges the morality of actions solely by their capacity to produce the greatest balance of happiness over suffering for everyone affected.

Law of Diminishing Marginal Utility

The **Law of Diminishing Marginal Utility** states that as a consumer consumes more units of a good or service, the additional satisfaction (utility) derived from each successive unit decreases.

Pareto Efficiency

Marginal utility theory

**Marginal utility theory** is the economic principle that the additional satisfaction (utility) a consumer derives from consuming one more unit of a good or service diminishes as total consumption of that good increases.