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explain me about assumption of law of diminishing marginal utility
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explain me about assumption of law of diminishing marginal utility
Utility:
Utility is the capacity of a commodity through which human wants are satisfied.
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We can briefly explain Marshall’s theory with the help of an example. Assume that a consumer consumes 6 apples one after another. The first apple gives him 20 utils (units for measuring utility). When he consumes the second and third apple, the marginal utility of each additional apple will be lesser. This is because with an increase in the consumption of apples, his desire to consume more apples falls.
Therefore, this example proves the point that every successive unit of a commodity used gives the utility with the diminishing rate.
We can explain this more clearly with the help of a schedule and diagram.
Utility is the capacity of a commodity through which human wants are satisfied.
--. --. --
We can briefly explain Marshall’s theory with the help of an example. Assume that a consumer consumes 6 apples one after another. The first apple gives him 20 utils (units for measuring utility). When he consumes the second and third apple, the marginal utility of each additional apple will be lesser. This is because with an increase in the consumption of apples, his desire to consume more apples falls.
Therefore, this example proves the point that every successive unit of a commodity used gives the utility with the diminishing rate.
We can explain this more clearly with the help of a schedule and diagram.
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explain me about assumption of law of diminishing marginal utility
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explain me about assumption of law of diminishing marginal utility for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about explain me about assumption of law of diminishing marginal utility covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for explain me about assumption of law of diminishing marginal utility.
explain me about assumption of law of diminishing marginal utility for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about explain me about assumption of law of diminishing marginal utility covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for explain me about assumption of law of diminishing marginal utility.
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