The general pattern that consumption of the first few units of any good tends to bring a higher level of _______ to a person than consumption of later units is a common pattern.
Question: The general pattern that consumption of the first few units of any good tends to bring a higher level of _______ to a person than consumption of later units is a common pattern.
The answer is utility.
The law of diminishing marginal utility states that as a person consumes more of a good, the additional (or marginal) utility from each additional unit of the good declines. In other words, the first slice of pizza brings more satisfaction than the sixth.
This is because our needs and wants are not always met in equal amounts. When we are hungry, the first few bites of food will satisfy our hunger more than the last few bites. Similarly, when we are thirsty, the first few sips of water will quench our thirst more than the last few sips.
The law of diminishing marginal utility can also be applied to other goods and services, such as clothing, entertainment, and travel. For example, the first new outfit we buy will make us feel more stylish than the tenth new outfit we buy. And the first vacation we take will be more enjoyable than the twentieth vacation we take.
The law of diminishing marginal utility is an important concept in economics because it helps us understand how people make choices about how to allocate their limited resources. When we are faced with a choice of goods or services, we will tend to choose the goods or services that give us the greatest amount of utility. And as we consume more of a good, the marginal utility of that good will decline, so we will eventually reach a point where we are no longer willing to purchase any more of that good.
I hope this helps! Let me know if you have any other questions.
Rjwala is your freely Ai Social Learning Platform. here our team solve your academic problems daily.
0 Komentar
Post a Comment