Question

Difine marginal utility. State the law of diminishing marginal utility.​

Answer 1

Answer:

Marginal utility is the added satisfaction that a consumer gets from having one more unit of a good or service. The concept of marginal utility is used by economists to determine how much of an item consumers are willing to purchase.

The Law Of Diminishing Marginal Utility states that all else equal as consumption increases the marginal utility derived from each additional unit declines. ... Utility is an economic term used to represent satisfaction or happiness.

Answer 2

Answer:

additional unity

Explanation:

Marginal utility refers to additional utility obtained from the consumption of an additional unit  of a commodity. To illustrate, if 10th  unit yields satisfaction of 100 utils, while 11th unit yields satisfaction of 105 utils, then marginal utility derived from the 11 th unit is 5 utils.

Law of diminishing marginal utility states that as consumption increases, marginal utility tends to decline. It is known as fundamental psychological law.