Even though total utility increases with consumption, marginal utility diminishes or decreases as consumption increases. This means that each additional pizza, or cup of coffee, or soda, or any other consumption good is still enjoyable, but not quite as enjoyable as the one before. Diminishing marginal utility means that total utility increases at a decreasing rate.

    On the graph to the right we illustrate diminishing marginal utility by showing the marginal utility of each added unit of consumption in a different shade. Each of the regions that looks like a colored stripe is the marginal utility from consuming one more unit. Each one is clearly smaller than the previous one, due to diminishing marginal utility.

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