Economics Marginal Utility Questions
The concept of diminishing marginal utility of income states that as a person's income increases, the additional satisfaction or utility derived from each additional unit of income decreases. In other words, the more income a person has, the less each additional dollar of income contributes to their overall well-being or happiness. This concept is based on the idea that individuals have limited needs and wants, and as their basic needs are met, the incremental benefit from additional income diminishes.