Question

As we use more and more of a product, we encounter ______________________.

Question 10 options:

diminishing marginal utility


diminishing product trust


diminishing satisfaction


diminishing monetary signals

Answer 1

As we use much more of a product, we experience a diminishing marginal utility.

Explanation:

The Law of Marginal Benefit Declining says that somehow the marginal use of each extra unit declining rises as consumption. The limited utility is generated as the utility shift is absorbed by a supplementary unit. Utility is an economic principle used to describe pleasure or satisfaction.

For example, a person may purchase a certain brand of chocolate for a little while. Soon, they may buy too little and choose another type of chocolate or buy cookies alternatively, because the fulfilment they initially received from chocolate is declining.