The law of diminishing marginal utility explains that as a person consumes more of an item or product, the satisfaction (or the utility) they derive from it wanes.

If “diminishing marginal utility” sounds like a jumble of words plucked at random from the appendix of a textbook, it’s probably because of the word “utility.” ...

The law of diminishing marginal utility says that as a consumer uses more and more of something, each additional unit provides less benefit. In other words, the marginal utility gets smaller.

Diminishing marginal utility also leads us to smooth our consumption over times, good times and bad times. This keeps us from putting all our money on Maximum Security at the Kentucky Derby.

The answer is a simple economics concept, the concept of diminishing marginal utility. Other things equal, the more you have of something the less additional satisfaction comes from more of it.

This decline in satisfaction is referred to as diminishing marginal utility, a core principle in economics. There are three main types of marginal utility: Positive marginal utility.

The Law of Diminishing Marginal Utility It is one of the basic principles taught to students studying economics. Introduced by Lord Alfred Marshall, it forms a crux in the micro-economic level ...

An individual consumer demonstrates the law of diminishing marginal utility every time he or she consumes a product. The first unit that is consumed satisfies the consumer's greatest need.

The law of diminishing marginal utility states that as the marginal utility derived from each additional unit that's used declines as consumption increases. Learn more.