Which concept explains the decline in additional satisfaction from consuming more units of a good or service?

The concept that describes the decline in additional satisfaction from consuming more units of a good or service is known as Diminishing Marginal Utility. This principle states that as an individual consumes additional units of a good, the satisfaction or utility gained from each extra unit tends to decrease. For example, when someone eats their first slice of pizza, they are likely to experience high satisfaction. However, with each subsequent slice, the enjoyment typically diminishes; the second slice might still be enjoyable, but by the time they reach the third or fourth slice, the pleasure they derive from each additional slice decreases significantly.

This concept is fundamental in understanding consumer behavior and how choices are made regarding consumption. It helps explain why individuals do not continue to consume indefinitely and how their decisions are influenced by the perceived value of additional units.

The other concepts do not capture this specific phenomenon. Opportunity cost refers to the value of the next best alternative forgone when a choice is made and does not directly address the relationship between consumption and satisfaction. Total utility measures the overall satisfaction obtained from all units consumed but does not focus on the incremental change in satisfaction from consuming one more unit. Demand relates to the willingness and ability of consumers to purchase goods at various prices but does not specifically refer to changes