The concept of Marginal utility describes that extra satisfaction you feel when you get more of something that you want such as a good or service.
In real life, marginal utility applies to just about every human need and want. For instance, if you went to buy pizza and you were able to afford more than you thought you would, that extra satisfaction you feel from getting more pizza is marginal utility.
The problem with marginal utility however, is that when you keep getting more of something, you will get to a level where you don't get as much satisfaction as you used to from getting extra.
For instance, if you keep getting more pizza on the same day, you will eventually stop wanting more pizza because you will feel as though you have had enough. This phenomenon is known as the Law of Diminishing Marginal Utility.
In conclusion, marginal utility defines human needs and wants and so is very important in real life.
Find out more at https://brainly.com/question/15242967.
