Law Of Diminishing Marginal Utility
diminishing marginal utility is a law of economics stating that the more you consume a good or use a service, the less satisfied you will be with each successive use or consumption. to understand the law of diminishing marginal utility, think about eating pizza when you are very hungry. for example, alex has ?. she finally buys ? slice of pizza. as alex eats that first slice, she believes it's the most delicious thing she's ever tasted. the second and third slices of pizza are also satisfying to her, though not as much as the first slice. by the fourth slice, alex is quite full. alex eats the fifth slice even though the pizza is no longer enjoyable for her. after the sixth slice, she feels sick. the more alex consumes the pizza, the less benefit she derives from it until eventually it takes away from her level of satisfaction. the law of diminishing marginal utility is an important concept in determining consumer preferences. it assumes consumers are rational and will spend money in a way that maximizes their contentment with each subsequent unit without negatively affect in their total enjoyment. while alex may have derived positive utility form the first few slices of pizza, eating the entire pizza was not a very economical choice.
- law of diminishing marginal utility・・・限界効用逓減の法則