Resumen

Summary ECO204 The Law of Diminishing Marginal Utility Principles of Microeconomics (ECO204) When talking about utility in economics it is satisfying the consumer that is receiving goods or services. In other words, the consumers main goal is to obtain the sat

ECO204 The Law of Diminishing Marginal Utility Principles of Microeconomics (ECO204) When talking about utility in economics it is satisfying the consumer that is receiving goods or services. In other words, the consumers main goal is to obtain the satisfaction or happiness of the buyer. The Law of Diminishing Marginal Utility says the more units of a good consumed, the lower the marginal utility of the item. As you continue to read, I will explain the relationship between total utility and marginal utility and evaluate how it can explain the diamond-water paradox.