Economics Marginal Utility Questions Medium
The law of diminishing marginal benefit states that as a person consumes more units of a particular good or service, the additional satisfaction or benefit derived from each additional unit will eventually decrease. In other words, the more of a good or service a person consumes, the less satisfaction or utility they will derive from each additional unit consumed. This occurs because individuals tend to prioritize their needs and wants, and as they satisfy their most urgent needs with the initial units consumed, the subsequent units provide less and less additional satisfaction. As a result, the marginal benefit decreases and eventually reaches a point where it becomes negative, indicating that further consumption of the good or service will actually result in a decrease in overall satisfaction. The law of diminishing marginal benefit is a fundamental concept in economics and helps explain consumer behavior and decision-making.