Economics Marginal Utility Questions
The law of diminishing marginal utility states that as a person consumes more units of a particular good or service, the additional satisfaction or utility derived from each additional unit decreases. In other words, the more of a good or service a person consumes, the less satisfaction they derive from each additional unit. This occurs because individuals tend to satisfy their most urgent needs or desires first, and as they consume more of a good, the marginal utility decreases as the need for that good becomes less urgent.