MARGINAL UTILITY
Additional satisfaction that a customer derived from buying one more unit of a commodity or service, given that all other factors are still constant. This is an essential economic concept because economists use it to evaluate how much of a good the consumer will purchase. Positive marginal utility signifies consuming an additional item increases the total utility. On the other hand, negative marginal utility means the consumption of another item decreases the total utility.
Also called marginal benefit.
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Pricing model used in valuing a business based on what an investor expects from any capital invested in the firm. It is computed by adding the amou ...
Remainder Man
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Average Collected Balance
The total average of the collected funds in a bank account in a month. The balance is calculated by adding the collected balance and dividing it by ...
Bankable Funds
Forms of payment that are accepted at financial institutions. Retailers and other organizations that directly accept payments from customers typica ...
Prudent-Person Rule
A legal maxim that restricts the discretion in a client's account to investments that a prudent person seeking reasonable income and preservati ...
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