Define "marginal utility" in health care consumption.

Marginal utility in the context of health care consumption refers to the additional satisfaction or benefit derived from consuming one more unit of health care service. This concept is central to understanding consumer behavior in economics, as individuals make decisions based on the incremental benefits they receive from additional consumption.

When a patient considers whether to receive another medical service or procedure, they evaluate how much extra satisfaction or health improvement they would gain from that service. If the marginal utility is high, the individual may decide that the benefit outweighs any associated costs, leading to a consumption of that additional service. Conversely, if the marginal utility is low, the individual may decide it is not worth the cost or effort.

This understanding allows health care economists to analyze how consumers allocate their resources toward health care and how changes in costs or availability might influence their decisions. Overall, recognizing marginal utility helps in designing health care policies and services that cater effectively to patient needs.