In economics, the law of diminishing marginal utility states that the added benefit of consuming more of a product or service declines as its consumption increases. That is, the satisfaction or ...

It is one of the basic principles taught to students studying economics. Introduced by Lord Alfred Marshall, it forms a crux in the micro-economic level often reflected in routine, day-to-day life.

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Charlene Rhinehart is a CPA , CFE, chair of ...

Forbes contributors publish independent expert analyses and insights. A former Dallas Fed president, I cover the economy. This is not an argument for more quantitative easing, or QE3, as it would ...

Learn how to calculate the ratio of marginal consumption to marginal income Suzanne is a content marketer, writer, and fact-checker. She holds a Bachelor of Science in Finance degree from Bridgewater ...

You don't need to have studied economics to be familiar with the law of diminishing marginal utility and the idea of consumer surplus. The first has to do with the benefit consumers get from their ...

Your business's marginal revenue is the extra money made if you produce one more unit of a product or service. Knowing the marginal revenue from increasing sales can help you decide if expansion is ...