Consumers must understand the economist's law of diminishing marginal utility in order to maximize their satisfaction.

Question

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The law of diminishing marginal utility states that as a consumer consumes more and more units of a good, the additional satisfaction or utility that they derive from each additional unit of the good decreases. By understanding this law, consumers can make informed decisions about how much of a good to consume in order to maximize their overall satisfaction. Therefore, it is important for consumers to understand this concept.

Consumers Must Understand the Economist's Law of Diminishing Marginal Utility