Asked by
Makaryous Kelini
on Nov 25, 2024Verified
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.
Verified Answer
NC
Learning Objectives
- Grasp the importance of the law of diminishing marginal utility and its implications for consumer behavior.