ECO 204 The Law of Diminishing Marginal Utility University of Arizona Global Campus ECO

ECO 204  The Law of Diminishing Marginal Utility  University of Arizona Global Campus ECO 204: Principles of Microeconomics   The Law of Diminishing Marginal Utility  In microeconomics, it is necessary to recognize how a product performs with intended consumers. The importance of utility, or addition to one's happiness or benefits one's sense of well-being, is vital in ensuring that consumers are getting what they want but also know how it applies to the law of diminishing marginal utility. It is well defined by Greene and Baron (2001) as "Utility is itself the measure of the value of what you gain" (p. 244). Utility is commonly referred to as "utils" when measuring the amount of utility something gives a consumer. Knowing that the more of a particular item that one utilizes, the less utility that item provides to the consumer.  Relationship between Total and Marginal Utility  In the tex