diminishing marginal utility

Definition

The property that marginal utility falls as the quantity consumed of a single good or service rises. This is neither necessary nor sufficient for most common results in economic theory, but it is a property of mostutility functions that are well behaved.

Use this term in a sentence

“ You need to try and find a way to turn around a diminishing marginal utility or get rid of it as quick as you can. ”

​ Was this Helpful? YES  NO 4 people found this helpful.

“ The diminishing marginal utility of our product was of some concern but the motivations of the public to consume more were consoling. ”

​ Was this Helpful? YES  NO 5 people found this helpful.

“ I had to figure out what diminishing marginal utility meant and that meant I would have to go to my brother, because he knew all about it. ”

​ Was this Helpful? YES  NO 10 people found this helpful.

Show more usage examples...

Mentioned in these terms

Most Viewed

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
diminishing marginal returns diminishing return