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The law of diminishing marginal utility is a principle in economics that states that as a person consumes more of a particular good or service, the additional satisfaction or utility they derive from each additional unit will decline.
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So satisfaction declines.
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In other words, the first few units of a good or service will typically be more valuable to a person than the later units.
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For example, imagine that you're really hungry and you start eating a bag of chips.
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The first few chips might be very satisfied and give you a lot of pleasure, but as you continue to eat more and more chips, the additional pleasure you get from each additional chip will decline.
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Eventually, you might reach a point where you feel full, and additional chips might provide little or no or even negative satisfaction.
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There are a few imitations to the law of diminishing marginal utility.
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One is that it assumes that the person's preferences are stable and consistent over time.
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Stable and consistent over time...