The Omnipresent Law of Diminishing Marginal Utility
Diminishing Marginal Utility (DMU) is the idea that while total utility always increases when you consume more, the marginal utility—the satisfaction added by the very last unit consumed—always falls. It’s the "extra" joy that decreases. For example, a second slice of pizza doesn't give you as much satisfaction as the first one and third slice of pizza is not as delicious as the second one and so on. The same law is applicable in production theory as well. As you increase one factor input, holding everything else constant the marginal productivity of the factor declines. But this law is not only limited to economics and it isapplicable in many other forms in our day-to-day lives, as described below. The Law of Diminishing Marginal Actress Utility . When a new actress debuts, the marginal utility is astronomical—the silver screen lights up, and audiences appreciate her presence like a rare cinematic event. But because commercial cinema is relentless, director...