please explain the marginal utility and when exactly to use it ? The law of diminishing marginal utility says thatas a person consumes more and more of a certain good, the addition to total satisfaction decreases.as a person's income increases, the satisfaction associated with each dollar spent decreases.as a person consumes more and more of a certain good, the additional satisfaction increases.as a person's income increases, the satisfaction associated with each additional dollar earned increases.Assume that this law holds for Quincy with ice cream and pretzels.Quincy decides to eat less ice cream and more pretzels. As a result,Quincy's marginal utility of ice cream decreases, and his marginal utility of pretzels increases.Quincy's marginal utility of both ice cream and pretzels decreases.Quincy's marginal utility of both ice cream and pretzels increases.O Quincy's marginal utility of ice cream increases, and his marginal utility of pretzels decreases.

Answered: The law of diminishing marginal utility…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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please explain the marginal utility and when exactly to use it ?

The law of diminishing marginal utility says that
as a person consumes more and more of a certain good, the addition to total satisfaction decreases.
as a person's income increases, the satisfaction associated with each dollar spent decreases.
as a person consumes more and more of a certain good, the additional satisfaction increases.
as a person's income increases, the satisfaction associated with each additional dollar earned increases.
Assume that this law holds for Quincy with ice cream and pretzels.
Quincy decides to eat less ice cream and more pretzels. As a result,
Quincy's marginal utility of ice cream decreases, and his marginal utility of pretzels increases.
Quincy's marginal utility of both ice cream and pretzels decreases.
Quincy's marginal utility of both ice cream and pretzels increases.
O Quincy's marginal utility of ice cream increases, and his marginal utility of pretzels decreases.

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Step 1

Law of Diminishing Marginal Utility indicates that gains in satisfaction become smaller as successive units of a specific product are consumed. or satisfaction declines as a consumer acquires additional units of a given product.
meaning the more of that product the obtain, the less the want still more of it. For Example As a person consumes more and more chocolate the satifaction derived from each additional unit of chocolate consumed dimnishes.

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