What does the law of diminishing marginal utility posits that as a person consumes increasing quantities of a given good,the pleasure she derives from it increases,but at a decreasing rate.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility is an economic concept that states that as a person consumes more and more of a good, the additional satisfaction or utility he or she derives from each additional unit of the good decreases. In other words, the initial pleasure derived from a good may be high, but as the individual consumes more and more of the same good, the additional pleasure or satisfaction incurred from consuming each additional unit will start to decrease.

What Does the Law of Diminishing Marginal Utility Posits That