Difference between revisions of "Law of Diminishing Marginal Utility"
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| − | The Law of Diminishing Marginal Utility states that one's [[utility]] decreases with each additional unit of a [[good]] they purchase. | + | The Law of Diminishing Marginal Utility states that one's marginal [[utility]] decreases with each additional unit of a [[good]] they purchase. One may still get positive utility from increased consumption, but at a smaller (and increasingly smaller) rate. |
[[Category:Economics]] | [[Category:Economics]] | ||
Revision as of 04:24, March 29, 2007
The Law of Diminishing Marginal Utility states that one's marginal utility decreases with each additional unit of a good they purchase. One may still get positive utility from increased consumption, but at a smaller (and increasingly smaller) rate.
