I think you meant &quot;diminishing marginal utility&quot;. The law of diminishing marginal returns concerns employees not goods consumed.<p>Though not specifically relevant to your post, this &quot;law&quot; doesn&#x27;t always hold. Some goods have a utility threshold that must be crossed before they become valuable or increase in utility (e.g., various medicines and antibiotics). Money operates similarly, i.e., its utility does not <i>necessarily</i> diminish, much less in monotonic fashion. Assume that if I make N dollars, I may be able to afford popcorn or I may be able to afford butter, but not both. Let&#x27;s also assume that I derive little satisfaction from popcorn or butter alone. However, if I make N+1 dollars, I can afford both popcorn and butter from which I derive a great deal of satisfaction. The addition $1 has greater utility than the Nth dollar I had previously.