Marginal Utility

Law of Diminishing Marginal Utility

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Definition

Marginal utility is the additional perceived value or satisfaction a consumer attains due to purchasing or consuming one additional unit of a product. [1]

The Law of Diminishing Marginal Utility describes a situation in which consumption of an additional unit of a good adds less to total satisfaction or perceived value than the preceding unit. [1]

See Also

Law of Diminishing Returns

 

References

  1.  American Marketing Association, AMA Dictionary.

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