Utility+-&nbsp;What+is+utility?++Marginal+Utility?+How+does+health+affect+utility?

=Utility=

Utility describes the amount of satisfaction an individual receives from a good or service. Individuals will consume the goods and services that maximize their level of utility.

=The Law of Diminishing Marginal Utility=

The law of diminishing marginal utility states that for an additional unit of any good or service, the amount of utility that an individual derives from it will decrease. Although total utility will increase with additional amounts of a good or service, it will increase at a decreasing rate.

=Utility and Health=

Economists view health as a durable good that generates a flow of services. It is from these services that individuals receive utility. As well, health can be considered an investment. A person may pay for medical check-ups to ensure that he will continue to receive a high level of utility from his health in the future. The law of diminishing marginal utility indicates that a sick person would find health services more valuable than someone in good health.