The law of marginal utility is just another way of looking at the same concept.
There's no marginal utility in warehoused gold although I guess you can make an ingot into a door stop.
If we hold additional cash or banks hold additional cash reserves, total utility will rise, but marginal utility will likely fall.
And unless they repeal the laws of diminishing returns, marginal utility and supply and demand, the paper money will lose out.
Partly because the language is already so rich, the "marginal utility" of new words is declining: Existing things are already well described.
Low tax rates make it easier to get to the point of diminishing marginal utility from extra work and incremental investment risk.
FORBES: How I Know Higher Taxes Would Be Good For The Economy
Its impulse is to grow by recruiting and retaining ever more marginal students without any consideration of marginal utility--whether the result is worth the effort.
Or, if you think that the marginal utility of taxpayer income and the efficiency cost of taxing are both very low, consider the opportunity cost of government spending.
Like most everything else, holding money has diminishing marginal utility.
Remember the law of diminishing marginal utility in Econ 101?
Just as diminishing marginal utility means more of something adds less and less to total utility (bank reserves), it also means that less of something (bologna) will raise its utility at the margin.
FORBES: Tom T. Hall's Week in Jail, the Jailer's Wife's Bologna, and Monetary Policy
Hence, the theory says that people will not be averse to risks involving monetary gains and losses that do not alter lifetime wealth enough to affect significantly the marginal utility one derives from that lifetime wealth.
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