Define Budget Set And Marginal Utility Analysis.

A budget set is the collection of all bundles of goods that a consumer can buy with his income at the prevailing market prices.

Marginal utility (MU) refers to changes in total utility due to the consumption of one additional unit of a commodity. For example, suppose 4 bananas give us 28 units of total utility and 5 bananas give us 30 units of total utility.

Explore more such questions and answers at BYJU’S.

Was this answer helpful?


0 (0)


Choose An Option That Best Describes Your Problem

Thank you. Your Feedback will Help us Serve you better.

Leave a Comment

Your Mobile number and Email id will not be published. Required fields are marked *




Free Class