Eco 561 Week 2 Discussion Questions
Submitted by jen867par on July 11, 2011
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Eco 561 Week 2 Discussion Questions
1) What are some real-life examples of diminishing marginal utility?
According to McConnell, Brue and Flynn, 2009, the principle of diminishing marginal utility is that “added satisfaction declines as a consumer acquires additional units of a given product. Although consumer wants in general may be insatiable, wants for particular items can be satisfied.” A simple example of diminishing marginal utility would be buying a product or service for the first time. The excitement and the pleasure derived from the newness and ability to purchase the product/service is wonderful. However over time that feeling declines and the customer loses that first joy. The customer may have to...
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