Final answer:
The satisfaction experienced from consuming a good or service is referred to as utility, and it is the satisfaction or usefulness that a consumer obtains from the consumption of a good or service. The law of diminishing marginal utility states that as a person receives more of a good, the additional utility from each additional unit of the good declines.
Step-by-step explanation:
The satisfaction experienced from consuming a good or service is referred to as utility. Utility is the satisfaction or usefulness that a consumer obtains from the consumption of a good or service. Economists assume that the more of a good one consumes, the more utility one obtains, but the utility received from each additional unit of the good tends to decline. This is known as the law of diminishing marginal utility.