|Overview: Diminishing Marginal Utility|
The decreasing value that consumers will pay for a good as they obtain more of it.
What is Diminishing Marginal Utility?
John Spacey, updated on June 21, 2018
Diminishing marginal utility is the decreasing value that a consumer assigns to a good as they obtain more of it. It can be used to explain the price difference between water and diamonds. If a person had no water, they would pay more for water than diamonds. However, since water is more plentiful than diamonds, diamonds achieve a higher price.
EconomicsThis is the complete list of articles we have written about economics.
If you enjoyed this page, please consider bookmarking Simplicable.
A list of economic theories that are particularly useful for business.
The tendency for people at high risk to buy insurance.
A list of economic positions or capabilities that allow you to outperform in a particular industry.A definition of knowledge work with examples. A definition of production with examples.
An overview of post-scarcity.The common types of economic infrastructure.
The common types of business competition.The common types of inefficiency.
An overview of supply with common examples.
The difference between two common investment measurements.
An overview of Regression Toward The Mean.An overview of the Efficient Market Hypothesis.
An overview of animal spirits, a theory of investing.A definition of financial market with examples.
A definition of Mr. Market, an investing theory.
A definition of organic growth with examples.
The common types of concept company.A definition of information costs with examples.
The definition of channel check with examples.
TrendingThe most popular articles on Simplicable in the past day. Recent posts or updates on Simplicable. Site Map