law of diminishing marginal utility
C2Academic/Technical
Definition
Meaning
An economic principle stating that as a person consumes more units of a good or service, the additional satisfaction (utility) gained from each extra unit decreases.
A foundational concept in microeconomics describing the decreasing incremental benefit obtained from additional consumption, which explains consumer choice, demand curves, and the concept of satiation.
Linguistics
Semantic Notes
The term is a compound noun phrase functioning as a singular concept. 'Marginal' refers to the change from one unit to the next, not the total. It is a theoretical law, not a legal statute.
Dialectal Variation
British vs American Usage
Differences
No significant lexical differences. Spelling follows regional conventions: 'marginal' (both), 'utility' (both).
Connotations
Identical technical, academic connotations in both varieties.
Frequency
Equally frequent in economics literature in both regions.
Vocabulary
Collocations
Grammar
Valency Patterns
The [law of diminishing marginal utility] + [verb: states, suggests, implies, holds] + [that-clause][Subject] + [verb: illustrates, demonstrates, follows] + the [law of diminishing marginal utility]Vocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “[Not applicable for this technical term]”
Usage
Context Usage
Business
Used in market analysis and consumer behavior studies to predict demand saturation.
Academic
Core concept in microeconomics textbooks, lectures, and research papers.
Everyday
Rarely used; might be paraphrased as 'the more you have, the less you want another one'.
Technical
Precise term in economic modelling, utility theory, and consumer choice algorithms.
Examples
By Part of Speech
verb
British English
- The model assumes utility diminishes marginally.
- Consumers experience diminishing marginal utility.
American English
- The model assumes utility diminishes marginally.
- Consumers experience diminishing marginal utility.
adverb
British English
- [Not commonly derived]
American English
- [Not commonly derived]
adjective
British English
- It's a classic diminishing-marginal-utility scenario.
- The diminishing marginal utility effect was clear.
American English
- It's a classic diminishing-marginal-utility scenario.
- The diminishing marginal utility effect was clear.
Examples
By CEFR Level
- If you eat one chocolate, it's nice. If you eat ten, you might not want more. This is like the law of diminishing marginal utility.
- The law of diminishing marginal utility explains why the first glass of water on a hot day is worth more to you than the fifth.
- A key implication of the law of diminishing marginal utility is that it provides a theoretical foundation for progressive taxation, as an extra pound provides less utility to a wealthy person than to a poor one.
Learning
Memory Aids
Mnemonic
Think of eating slices of pizza: the first slice is fantastic (high utility), the fourth is still good, but the eighth might make you feel sick (very low or negative marginal utility).
Conceptual Metaphor
CONSUMPTION IS A FILLING CONTAINER (the container gets fuller, so adding more provides less satisfaction).
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Avoid translating 'law' as 'закон' in the legal sense; here it means 'принцип' or 'закономерность'.
- Avoid confusing 'marginal' with 'маргинальный' (social outcast); it means 'предельный'.
- 'Utility' is not 'утилитарность' (pragmatism) but 'полезность'.
Common Mistakes
- Using 'diminishing marginal utility' to refer to production (that's 'diminishing returns').
- Saying 'the law of diminished utility' (incorrect adjective form).
- Treating it as a plural noun, e.g., 'These laws...' (it is one singular law).
Practice
Quiz
What does the 'marginal' in 'law of diminishing marginal utility' specifically refer to?
FAQ
Frequently Asked Questions
It is a general principle and tends to hold true for most goods over most consumption ranges, but there can be exceptions for certain goods like collectibles or addictive substances.
The concept is most associated with 19th-century economists such as Hermann Heinrich Gossen, William Stanley Jevons, Carl Menger, and Léon Walras.
'Diminishing returns' (or diminishing marginal returns) typically refers to production, where adding more of one input yields smaller increases in output. 'Diminishing marginal utility' refers to consumption and subjective satisfaction.
Yes, if consuming an additional unit causes disutility or harm (e.g., eating so much you feel ill), then marginal utility is negative.