How does marginal utility influence the consumption of goods and services?

How does marginal utility influence the consumption of goods and services?

Marginal utility influences the consumption of goods and services by determining the additional satisfaction or benefit a consumer derives from consuming one more unit of a good or service. As consumers typically aim to maximize their overall satisfaction, they will continue consuming a good or service until the marginal utility derived from it diminishes to the point where it is no longer worth the cost or effort. In other words, consumers will consume more of a good or service as long as the marginal utility exceeds the marginal cost, but will reduce consumption when the marginal utility equals or falls below the marginal cost.