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Makaryous Kelini
on Nov 25, 2024

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With diminishing marginal utility, if a consumer reduces her consumption of a good, then her marginal utility from that good would increase.

Diminishing Marginal Utility

The principle that says the additional satisfaction a consumer gains from consuming one more unit of a good or service will lessen with each additional unit consumed.

Marginal Utility

Marginal utility is the additional satisfaction or utility that a consumer derives from consuming one more unit of a good or service.

  • Grasp the importance of the law of diminishing marginal utility and its implications for consumer behavior.
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Nicholas ChungDec 01, 2024
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