Q:
What are some real-life examples of diminishing marginal utility?
A:
Quick Answer
A common real-life example of diminishing marginal utility is the all-you-can-eat-buffet, according to Investopedia. As a person begins to fill up on food, the enjoyment declines with each serving until the satisfaction falls low enough to stop eating.
Continue ReadingFull Answer
In economics, the term diminishing marginal utility refers to something for which the utility decreases for every use, according to Investopedia. Another common example cited by Investopedia is the consumption of a chocolate bar. The total utility of something in economics refers to all of the marginal utility that derives from each use. According to Forbes, another real-life example of diminishing marginal utility attaches to excess bank reserves.
Learn more about Financial CalculationsSources:
Related Questions
-
Q:
What are some examples of ceteris paribus in economics?
A: One example of ceteris paribus in economics is when prices go up as demand exceeds supply, when all other factors are disqualified from the analysis, accor... Full Answer >Filed Under: -
Q:
What does a financial analyst do?
A: Investopedia explains that a financial analyst gathers data and analyzes the financial foundation of a business or industry. The daily tasks of a financial... Full Answer >Filed Under: -
Q:
How are basis points calculated?
A: A basis point is simply calculated as one-hundredth of a percentage point, or 0.01 percent, explains Investopedia. For example, if an interest rate rises b... Full Answer >Filed Under: -
Q:
How do you calculate the rate of return?
A: Use the capital asset pricing model to calculate the required rate of return for a stock, as Investopedia explains. Estimate a risk-free rate, determine th... Full Answer >Filed Under:
You May Also Like
-
Q:
How can you find free money for summer camp?
-
Q:
What are examples of biological evolution?
-
Q:
What are some examples of a yearbook dedication?
-
Q:
What are some factors that influence magazine advertising costs?
-
Q:
What are examples of kinetic and potential energy?
-
Q:
What are some examples of simple compound sentences?
