A note from Daniel

The usefulness of additional units of any good tends to vary with scale. Marginal utility allows us to understand the value of one additional unit, and in most practical areas of life, that utility diminishes at some point. On the other hand, in some cases, additional units are subject to a critical point where the utility function jumps discreetly up or down.

Daniel The Great Mental Models, Volume 4, page 52 · December 11, 2024 Save to shelf
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