Marginal utility decreases as more and more of a good is consumed.

Question

Quizplus · Accepted Answer

Marginal utility refers to the additional satisfaction or usefulness gained from consuming one more unit of a good. As more and more of the good is consumed, the marginal utility tends to decrease. This is because the initial units of a good provide more satisfaction or usefulness compared to the subsequent units. This is known as the law of diminishing marginal utility.

Marginal Utility Decreases as More and More of a Good