Household Demand:

Cardinal Utility

An actor desires to obtain the largest sum of utility (whatever that is).

However, the utility of each additional unit of whatever it is he desires is assumed to decline at the margins.

a. That means that each additional unit of a thing is worth less to you than the unit that proceeded it.

b. In other words, the more you have of something, the less more of it is worth to you.

c. This is referred to as The Law of Diminishing Marginal Utility.

indifference