law of diminishing marginal utility

The law of diminishing marginal utility states that as more of a good or service is consumed, the additional satisfaction derived from every additional unit decreases. This law can be explained by the fact that people tend to reach saturation points with certain goods or services, and no matter how much more of the same good or service they consume, the amount of satisfaction they experience will steadily decline. In simple terms, the law of diminishing marginal utility says that after a certain point, more of the same good will not add any further benefit to the consumer.