Primary navigation:

QFINANCE Quick Links
QFINANCE Topics
QFINANCE Reference
Add the QFINANCE search widget to your website

Home > QFINANCE Dictionary > Definition of law of diminishing marginal utility

Definition of

law of diminishing marginal utility

Economics

increased consumption of product decreases consumer's satisfaction a general theory in economics stating that each unit of a product consumed adds less satisfaction to the consumer than the previous one, i.e., the marginal utility of any good or service diminishes as each new unit of it is consumed

Definitions of ’law of diminishing marginal utility’ and meaning of ’law of diminishing marginal utility’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’law of diminishing marginal utility’ and other financial terms with our online QFINANCE Financial Dictionary.

Back to top