Diminishing Marginal Utility and Fresh Baked Brownies

Fresh-baked brownies illustrate the concept of diminishing marginal utility and how pricing to increase demand despite that.
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Diminishing Marginal Utility and Fresh Baked Brownies

  • Apr 18, 2017
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Understanding diminishing marginal utility is essential to effective pricing. The good news is that it sounds far more complicated than it is. The concept, and the pricing models used to maintain demand in spite of it, can be illustrated by looking at the enjoyment you get from a plate of fresh brownies.

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