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Last edited 10 Sep 2020
Diminishing marginal utility
The Green Book, Central Government Guidance On Appraisal And Evaluation, Published by HM Treasury in 2018, suggests that diminishing marginal utility is: ‘…the tendency for the satisfaction individuals derive from an additional unit of a good or service to diminish as more units are acquired or consumed.'
Diminishing marginal utility of income suggests that: ‘…the value of an additional pound of income is higher for a low income recipient and lower for a high income recipient.’
See also: Marginal utility.
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