LAW OF DIMINISHING MARGINAL UTILITY
An economic generalization explaining that as a person consumes more products or services but maintains its consumption of other commodities, there is a decrease in the marginal utility the individual is consuming from other units of the said product. In other words, consumers try several products or services rather than just buying lots of one commodity. This law is used to forecast customers’ purchasing behavior and to adjust its sales strategies.
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A series of related products which are all made or manufactured by the same company.
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