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... Man. This really means that a consumer will evaluate each product, and acquire the one that lets them gain the most total utility form that good. The law of diminishing marginal utility states that as extra units of a product are consumed, each extra unit adds less and less to total utility. I.e. the fifth beer on a warm day may increase your satisfaction, but by less than you gained from your first 4 beers. The marginal utility of the 5th beer was less than the 1st, 2nd, 3rd and 4th beers Q of Beer Total Utility Marginal Utility 0 0 0 1 20 20 2 50 30 3 60 10 4 62 2 5 60 -2 As shown in the table above it is easy to see that after the second beer the utility starts to decrease. The law of diminishing marginal utility helps to explain the general nature of a persons demand for a product. If utility decreases after an extra unit is consumed, then it is simple to assume that the ...