Principles of Microeconomics / Unit 1 MIC 0020 short lesson, about 20 seconds
Diminishing Marginal Utility
Captions available
The idea
Utility is the satisfaction a good gives. Diminishing marginal utility means each added unit brings less added satisfaction than the one before.
In practice
The first slice of pizza is a meal; the fifth is a chore.
Where people slip
Falling marginal utility is why a buyer stops: the next unit is worth less while its price stays the same, so eventually price exceeds benefit.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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