Diminishing marginal utility is a concept in economics that states that the satisfaction or benefit derived from consuming an additional unit of a good or service decreases as the quantity consumed increases. In simpler terms, it means that the more of something we have or consume, the less satisfaction we get from each additional unit. The initial units of a good or service provide the most utility or satisfaction, but as we consume more, the marginal utility gradually diminishes. This principle helps explain why individuals are willing to pay more for the first unit of a good or service compared to subsequent units.
