Utility is an abstract measurement of satisfaction or
happiness that a consumer receives from bundle of goods or services.
So, the Marginal Utility of a good or service is the change
in the utility from an increase in the consumption of that good
or service.
Now the Law of diminishing
marginal utility comes to picture. In todays market with tough competition to
maintain a high share of market companies try to make certain changes in consumer's behavior.
For instance an article released in January 2018 exposed that Apple use planned obsolesce as a tool to increase its sales figure of new releases of phones. According to the article it uses bugs updates and security patches so as to make the phones slower or else releases new operating software versions so that the hardware won't support the software.
In this case diminishing marginal utility played a role in increasing the frequency of obsolescence of a product, by reducing its product cycle.
Below is a link to an article which inspired me to write this blog.
We're all losers to a gadget industry built on planned obsolescence
Planned obsolescence of the gadget industry is absolutely obscene
referred websites:
Referred Book:
Princples of Microeconomics By N. Gregory Mankirw
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