1. What are the necessary conditions for the operation of law of diminishing marginal utility??
2. What are the limitations and importance of this law ?
Answers
Answer:
Hey Mate !
1.There must be continuity in the consumption. If a break is necessary, then the time interval between the consumption of two units should be appropriately short. It is assumed that the quality of the commodity remains uniform during the period of consumption.
2.Limitations of the law of DMU are: It is assumed that the tastes, habits, fashion, and income remains constant. But this is not true realistically. Income of the consumer is assumed is constant which doesn't happen and thus he shifts to another good but this is not taken into consideration.
The law helps to explain the phenomenon in value theory that the price of a commodity falls when its supply increases. It is because with the increase in the stock of a commodity, its marginal utility diminishes.
Explanation:
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Answer:
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here is ur answer ⬇️⬇️⬇️⬇️
- Following are the assumptions in the law of diminishing marginal utility: The quality of successive units of goods should remain the same. If the quality of the goods increase or decrease, the law of diminishing marginal utility may not be proven true. Consumption of goods should be continuous.
- The ''Law of Limitation'' prescribes the time-limit for different suits within, which an aggrieved person can approach the court for redress or justice. The suit, if filed after the exploration of time-limit, is struck by the law of limitation. ... The very first Limitation Act was enacted for all courts in India in 1859. The law is important because it acts as a guideline as to what is accepted in society. Without it there would be conflicts between social groups and communities. It is pivotal that we follow them. The law allows for easy adoption to changes that occur in the society.