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typo
Finally, at 4 o'clock in the afternoon, you see the golden arches of McDonalds appear on the horizon. You drive closer and the arches appear bigger. It’s not a mirage!
Finally, at 4 o'clock in the afternoon, you see the golden arches of McDonalds appear on the horizon. You drive closer and the arches appear bigger. It’s not a mirage!
When you arrive, you run in and order its famous french fries. You’re famished. When the food arrives, you take your first handful of french fries. Wow, it is really satisfying to to eat that first bunch of french fries with an empty stomach. Your marginal utility is extremely high. You might have even been willing to pay $5 for that first mouthful of french fries because you are so hungry. Then you eat your second handful of french fries. Your marginal utility is still high, but not quite as high as the first one. You wouldn’t have paid as much for the second handful either. By the time you finish all the french fries, the last few bites were not so satisfying. In fact, you’ve gotten sick to your stomach. The marginal utility of that last french fry was very low. Perhaps even less than zero!
When you arrive, you run in and order its famous french fries. You’re famished. When the food arrives, you take your first handful of french fries. Wow, it is really satisfying to eat that first bunch of french fries with an empty stomach. Your marginal utility is extremely high. You might have even been willing to pay $5 for that first mouthful of french fries because you are so hungry. Then you eat your second handful of french fries. Your marginal utility is still high, but not quite as high as the first one. You wouldn’t have paid as much for the second handful either. By the time you finish all the french fries, the last few bites were not so satisfying. In fact, you’ve gotten sick to your stomach. The marginal utility of that last french fry was very low. Perhaps even less than zero!
You have just experienced the '''''Law of Diminishing Marginal Utility''''': the marginal utility of each additional unit (e.g., french fry) always declines (in a given period). This is similar to the "Diminishing Returns" experienced by a '''''producer''''' of goods.
You have just experienced the '''''Law of Diminishing Marginal Utility''''': the marginal utility of each additional unit (e.g., french fry) always declines (in a given period). This is similar to the "Diminishing Returns" experienced by a '''''producer''''' of goods.