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.
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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.
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