What is Diminishing Marginal Utility?
- Diminishing marginal utility is the decrease in quality of the product or satisfaction in the consumer with every passing use of the item.
Real World Example
- Say you’re eating a slice of pizza. The first slice is satisfying and appetizing to the consumer, however after four slices the enjoyment of the pizza by the consumer decreases dramatically.
- A razor also exemplifies diminishing marginal utility as it becomes more dull with every use. The consumer experiences a diminishing quality of use every time they use the razor.
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