The law of diminishing marginal utility implies that in order to induce a buyer to buy more of a product, the seller must lower its price.

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The law of diminishing marginal utility states that as a person consumes more units of a good, the satisfaction (utility) gained from consuming each additional unit decreases. Therefore, to encourage a buyer to purchase more of a product, the seller often needs to lower the price to make the additional units more appealing, compensating for the reduced utility of subsequent units.

The Law of Diminishing Marginal Utility Implies That in Order