for two or more people you need at least two toilets but as you have more people and more toilets the utility of each additional toilet is less. How do you explain this?
=> This phenomenon can be explained by the law of diminishing marginal utility. Initially, adding more toilets increases overall utility as it reduces waiting times and improves convenience for each person. However, as more toilets are added, the marginal benefit of each additional toilet decreases because the most urgent needs are already met. Therefore, while having more toilets still adds value, the incremental increase in utility diminishes with each additional unit.
=> This phenomenon can be explained by the law of diminishing marginal utility. Initially, adding more toilets increases overall utility as it reduces waiting times and improves convenience for each person. However, as more toilets are added, the marginal benefit of each additional toilet decreases because the most urgent needs are already met. Therefore, while having more toilets still adds value, the incremental increase in utility diminishes with each additional unit.