why is the law of diminishing marginal utility important 
the law of diminishing marginal utility is important in economics and business because it predicts consumer behavior it can be used by businesses to find the balance in supply and production it can inform a business marketing and sales strategies as well the bottom linethe law of diminishing marginal utility predicts how consumers will react to a certain level of supply as they consume more units of a single type of good the utility of each unit will decrease until the consumer doesn t want anymore businesses can use the law of diminishing marginal utility to understand consumer behavior price their goods and services and diversify their offerings 