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Home > QFINANCE Dictionary > Definition of law of diminishing marginal utility

Definition of

law of diminishing marginal utility

Economics

increased consumption of product decreases consumer's satisfaction a general theory in economics stating that each unit of a product consumed adds less satisfaction to the consumer than the previous one, i.e., the marginal utility of any good or service diminishes as each new unit of it is consumed

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Definitions of ’law of diminishing marginal utility’ and meaning of ’law of diminishing marginal utility’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’law of diminishing marginal utility’ and other financial terms with our online QFINANCE Financial Dictionary.

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