what is diminishing marginal utility mean?
1 answer
Diminishing marginal utility is an economic concept that states that as a person consumes more units of a particular good or service, the satisfaction or utility gained from each additional unit will begin to decrease. In other words, the more of something a person consumes, the less value or satisfaction they derive from each additional unit. This concept is derived from the observation that people tend to have a limited capacity to enjoy or benefit from a particular good or service, leading to a decreasing marginal benefit with each additional unit consumed.