diminishing marginal utility

diminishing marginal utility definition - business

diminishing marginal utility

The reduction in satisfaction that results from successive units of a good or service. For example, ice cream has diminishing marginal utility because the second dish provides less satisfaction than the first dish.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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