Question

Assuming that seafood is your favorite food. Would the law of diminishing marginal utility apply to your consumption of seafood?

Answer 1

Diminishing marginal utility will apply on every such good that starts generating negative utility after consuming few units of that good. It is true that seafood is a favourite food. But even then its continuous consumption will result in declining marginal utility because there is limited space in the stomach and there is only limited amount of food one can eat at a particular point of time. Therefore as one starts consuming more and more seafood the additional utility received from it goes on declining.