Marginal utility explains why the next unit matters most
The value of one more unit of something depends on how much of it you already have and what need it satisfies next.
Decisions often become clearer when I ask about the next unit, not the total category.
What I learned
Marginal utility is the additional benefit gained from one more unit of something. The first glass of water when I am thirsty is extremely valuable. The fifth glass may have much less value.
Why it matters
This helps explain why value is contextual. The same object can matter a lot in one situation and very little in another, depending on what need has already been met.
A practical use
When deciding whether to add more time, money, attention, or effort to something, I can ask: what does the next unit actually improve?
Question
Where am I judging a whole category as valuable when I should be judging the next increment?