The notion that the second unit of a good consumed improves the happiness of the consumer by less than the first unit improved the happiness of the consumer is summarized as

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This notion is known as the law of diminishing marginal utility, which states that as a consumer consumes more and more units of a good, the additional satisfaction, or marginal utility, derived from each successive unit of the good decreases. In other words, the second unit consumed provides less additional happiness than the first unit, and so on.

The Notion That the Second Unit of a Good Consumed