Question

6. Define Marginal utility. Sate the law of Diminishing Marginal Utility.​

Answer 1

marginal utility it refers to additional utility on a account of consumption of an additional unit of a commodity.if 10 units of a commodity yield satisfaction of 105 unils,and 11 units of a commodity yield satisfaction of 105 utils, the additional utility on account of the consumption of 11th utils then commodity is 105- 100=5 utils this is called marginal utility

law of diminishing marginal utility

psychologically, intensity of desire for a commodity tends to decrease as more and more standards units of a commodity ( like a cup of a tea not a sppon of a tea, a glass of milk,not a drop of milk) are consumed at a point of time ( implying that the consumption of standard units of the commodity is continous) this law is called law of diminishing marginal utilitt