The law of diminishing marginal utility implies that as a household consumes more of a product, its total utility will increase by smaller amounts, assuming marginal utility remains positive.

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The law of diminishing marginal utility states that as a consumer consumes more units of a good or service, the additional satisfaction (marginal utility) gained from consuming each additional unit decreases, as long as the marginal utility remains positive, the total utility will continue to increase, but at a decreasing rate.

The Law of Diminishing Marginal Utility Implies That as a Household