Question
The topic of this discussion is on an incredibly important concept in utility maximization: the law of diminishing marginal utility. This term is a reason
The topic of this discussion is on an incredibly important concept in utility maximization: the law of diminishing marginal utility. This term is a reason why the demand curve itself is downward-sloping. Specifically answer this prompt:Share two different goods that you consume: one good where the law of diminishing marginal utility barely applies (or maybe not at all) and one good where the law of diminishing marginal utility applies very quickly. Explain why for both goods. Finally, if the law of diminishing marginal utility does apply to certain goods or services, how could a business change pricing to take advantage of knowing this law?
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