The Mental Models Daily Podcast

Law of Diminishing Marginal Utility


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The Law of Diminishing Marginal Utility states that as a person consumes more units of a good or service, the additional satisfaction or utility derived from each additional unit decreases, assuming that other factors remain constant. In other words, the more of something we have or consume, the less we value each additional unit.

The first slice is amazing, the tenth? Not so much 🍕📉 More of

something brings less satisfaction over time.

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The Mental Models Daily PodcastBy Mental Models Daily

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