Source: Image of coffee cup, public domain, http://www.clker.com/clipart-coffee-english.html; All graphs by the author.
Achieving the highest amount of satisfaction (utility) subject to an individual's budget constraint.
An element that interrupts production of a firm or consumption by individuals.
Maximization of consumer utility within the parameters of household income and price of goods or services.
Additional cost incurred when producing one additional product.
Amount of utility gained by consuming an additional single unit of product.