Which economic rule states that the additional satisfation people get from consuming one more unit of a product will lessen with each additional unit they consume?
last Q on my hw just dont feel like reading --come on get ur 2 points lol
2006-10-01 13:55:30 · 2 answers · asked by Al3x_Dogg 2 in Social Science ➔ Economics
it is diminishing marginal utility - Economics defines Utility as consumer satisfaction. Marginal Utility is the utility of one unit.
I remember my prof used beer in his example, that made it easy to remember. lol. The first cold one is the best, then after 6 or so you don't enjoy it as much, as you aren't thirsty and stomach gets full. Then those around the time you start puking, marginal utility hits zero and starts to go negative. That is for most people.
diminishing returns is on the supply side - that by increasing your variable input - output increases slightly less as your fixed input will bottleneck. Anyway - it is nothing to do with consumers.
2006-10-01 22:55:39 · answer #1 · answered by JuanB 7 · 1⤊ 0⤋
The law of diminishing returns.
2006-10-01 20:58:12 · answer #2 · answered by bruinfan 7 · 0⤊ 0⤋