WAEC - Economics (2012 - No. 15)
The law of diminishing marginal utility applies to a
firm which minimizes cost
consumer who maximizes satisfaction
producer who maximizes marginal product
consumer who minimizes total utility
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The law of diminishing marginal utility states that the marginal utility of a good or service declines as its consumption increases. This means that, as a consumer keeps consuming additional units of a commodity, the additional satisfaction derived will keep decreasing (goods become less valuable as you continue consuming more of it)