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Essay / Research Paper Abstract
This 3-page paper provides an explanation of the law of diminishing marginal utility by focusing on a diner at an all-you-can-eat buffet. Bibliography lists 1 source.
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3 pages (~225 words per page)
File: D0_MTmargutil.rtf
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consumption insofar as consumers tend to behave rationally (for the most part) when it comes to such consumption. One of the interesting
facets when it comes to supply and demand is the principle of diminishing marginal utility, also known as the law of diminishing marginal utility. When "utility" is defined as a
benefit generated (or received) by consuming a good, marginal utility is considered the change that occurs when it comes to increasing consumption of that good. It could be assumed that
when utility increases, so does customer satisfaction. But the law of diminishing marginal utility suggests that as consumption of a particular good increases, the marginal utility, or enjoyment obtained by
consuming that good, decreases. In other words, there is such a thing as too much of a good thing. Everyone knows this - if, for example, you like chocolate, the
more you eat it, the more you get sick. Investoedia.com, which is an investment web site run by Forbes, points out
that the law of diminishing marginal utility is something that owners of all-you-can-eat buffet restaurants operates on. Investopedia points out that
the operators lure customers into restaurants with the "all-you-can-eat" concept, understanding that "all-you-can-eat" more often than not means maybe two platefuls. Heres why.
Generally, when someone enters such a buffet, he or she is hungry. The buffet looks delicious (and smells) delicious. The diner takes the plate and piles it full of
food, goes back to the table, and chows down. That first plate is the best plate, because its a lot of food, for a good price, and its filling an
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