【Mathematics】High School Math for Global Business! Mastering Marginal Utility with Partial Derivatives――A Simple Guide for Absolute Beginners (3)

Hello, this is Frank.

Today, I’m going to explain how to calculate **marginal utility** using **partial differentiation**, a method that frequently appears in economics. Many of you have probably heard the phrase **“law of diminishing marginal utility.”** Back in my university days, I remember feeling a little proud when I first learned it.

■ Understanding the Basics of Economics

As written in my profile, I majored in Economics at Hyogo Prefectural Kobe University of Commerce.
Marginal utility represents the increase in satisfaction (utility) gained by consuming one additional unit of a good or service, and it plays a key role in consumer theory in microeconomics.

Today, let’s calculate marginal utility using partial derivatives.

【Problem】

For the utility function \(u = x^{0.2}y^{0.5}\), find the marginal utilities \(MU_{x}\) and \(MU_{y}\).

Partial differentiation means taking the derivative with respect to one variable while keeping all other variables constant.

Now, let’s solve it.

【Solution】

\(MU_{x} = \frac{du}{dx} = 0.2x^{0.2 – 1}y^{0.5} = 0.2x^{-0.8}y^{0.5}\)

Next,

\(MU_{y} = \frac{du}{dy} = 0.5x^{0.2}y^{0.5 – 1} = 0.5x^{0.2}y^{-0.5}\)

Although the topic may feel challenging—especially for those of us from a humanities background—understanding it is incredibly rewarding.

Let’s continue deepening our learning step by step.

Stay tuned for the next article!


Learn more in Mathematics for Global BusinessClick here!
【Reference Book】“High School Mathematics Once Again” by Kazuo Takahashi / Japan Jitsugyo Publishing
【Lessons】For online English lessons, please see this page.
【Content Notice】We strive for accuracy, but we do not guarantee completeness. We assume no responsibility for any errors contained on this site.


For those curious about my publications, please visit my Amazon Author Page.

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Frank

■ Frank Yoshida is an award-winning author who made his professional debut in January 2009 after winning the Grand Prize in the “Gateway to Success for New Writers 2008” Contest, sponsored by Goodbook Shuppan, Japan. His acclaimed short love story, Hanarerarenaku-nacchau (“What Would I Do Without You?”), marked the beginning of his published literary journey. He holds a Bachelor of Arts in Economics from Kobe University of Commerce. ■ Frank brings a wealth of international business experience to the table. With a strong background in Surface Mount Technology (SMT), he served as a technical adviser in key innovation hubs such as Silicon Valley, Hsinchu (Taiwan), and San Jose (California). His global career includes negotiating international investment disputes in the United States, advising in the leather industry, and managing timber import strategies. As a seasoned international business consultant and flexpatriate, he has worked extensively across North America, Latin America, Oceania, Southeast Asia, Europe, and Africa for leading trading companies and multinational clients. ■ A certified English expert, Frank holds ten prestigious English qualifications: UNATE (United Nations Association Test of English) SA Class, BEST (Business English Standard Test) A-Grade, Volunteer Interpreter Test (V-Tsuken) A-Grade, TOPEC (Nursing English) Perfect Score, Nissho Business English Proficiency Test Grade 1, Tourism English Proficiency Test Grade 1, Zensho English Proficiency Test Grade 1, English Vocabulary Test (TANKEN) Grade 1, EIKEN® Grade 1, and Japan's National Government Licensed Guide Interpreter certification. ■ Frank is also a passionate motorcycle enthusiast. He finds his ultimate freedom cruising along scenic coastlines aboard his beloved Suzuki Hayabusa GSX-1300R mega tourer. He describes the liberating experience in two words: “Stay aloof.”

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