Economics Marginal Utility Questions
The relationship between marginal utility of energy and energy consumption is that as energy consumption increases, the marginal utility of energy decreases. This means that as individuals consume more energy, the additional satisfaction or benefit they derive from each additional unit of energy consumed diminishes. In other words, the more energy a person consumes, the less value they place on each additional unit of energy. This concept is based on the law of diminishing marginal utility, which states that as the quantity of a good or service consumed increases, the additional utility or satisfaction derived from each additional unit decreases.