Question

Describe the
law of diminisiting
masgirat uillity
,
it's limitations & importa,
nce​

Answer 1

Answer:

Main Limitations of Law of Diminishing Marginal Utility

(1) Measurability of utility:

(2) Abnormal persons:

(3) The law assumes that 'other things' must remain constant:

(4) The law is not applicable in case of rare collections:

(5) Initial stages:

(6) The law depends on the supply of the substitutes and complements:

importance :

This law is useful to consumer because by consuming the more units of commodity, satisfaction starts to decline. ... On the basis of this law consumer spends his/her money to purchase suitable quantity of commodity which maximizes his/her satisfaction.