Marginal utility describes the benefit that an economic ... While it is impossible to find out how much happiness a person derives from an extra cupcake, it is fairly straightforward to determine ...

What Is the Relationship Between the Law of Diminishing Marginal Utility & Consumer Surplus? What Is the Relationship Between the Law of Diminishing Marginal Utility & Consumer... But suppose the ...

The law of diminishing marginal utility is important in economics and business because it predicts consumer behavior. It can be used by businesses to find a balance between supply and production.

And the function for the marginal utility of money was a simple logarithm, which looked like this: with money ($) on the x-axis and utility (U) on the y-axis. The story in the curve is ...

That, more or less, is the concept of diminishing marginal utility, a clunky economic term for when consumers feel better about buying something the first time than they do about buying it again.