Marginal Utility: A Study of Consumption and Satisfaction

This assignment explores the concept of marginal utility and its relationship to consumer behavior and satisfaction. The student agrees with the statement that the law of diminishing marginal utility holds true, explaining that the satisfaction derived from consuming additional units of a good decreases. The assignment references the work of Monnot (2017) and Kushlev et al. (2018) to support the student's perspective. The student explains that marginal utility is the incremental increase in utility from consuming an additional unit, and the utility depends on the consumption of goods and services. The assignment highlights that as consumption increases, marginal utility decreases, which can eventually lead to zero or negative utility. The assignment is a concise analysis of how consumption affects consumer satisfaction.

The law of diminishing marginal utility indicates that gains in satisfaction become smaller
as successive units of a specific product are consumed. Do you agree or disagree with this
statement? Explain.
I completely agree with the statement, as marginal utility is considered to be the
incremental increase in utility that generally results from consuming a particular additional unit.
The utility is considered to be the satisfaction for what the customer expects to derive from
consumption under a particular unit of goods (Monnot, 2017). I also agree to the statement above
as the first derivate for the utility is determined through the satisfaction from goods consumption
or services, with respect to the amount that is being consumed.
According to the graph, when the consumer consumes more commodity units, the
marginal utility falls and it can become zero or negative. It completely depends on the intensity
of what the customer wants (Kushlev et al., 2018) . The greater the intensity, the greater is
customer satisfaction to derive from consumption of the unit of commodity. The utility depends
on the consumption of goods and services.

References
Kushlev, Kostadin, et al. "The declining marginal utility of social time for subjective well-
being." Journal of Research in Personality 74 (2018): 124-140.
Monnot, Matthew J. "Marginal Utility and Economic Development: Intrinsic Versus Extrinsic
Aspirations and Subjective Well-Being Among Chinese Employees." Social Indicators
Research 132.1 (2017): 155-185.