Explain briefly the drawbacks of law of marginal utility.
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THE MAIN DRAWBACKS ARE:----
_________
(1) Measurability of utility:
The law assumes that utility of a commodity can be measured with the measuring rod of money.
(2) Abnormal persons:
The law is not applicable to abnormal persons. If a man is drunkard the more liquor he drinks the more he is tempted to drink.
(3) The law assumes that ‘other things’ must remain constant:
It implies that the habits, tastes, temperament and income of the consumer remain constant for the operation of the law.
(6) The law depends on the supply of the substitutes and complements:
The law does not depend upon the supply of the commodity a consumer consumes but also on its substitutes and complements.
__________
hope it helps⤴
==========
THE MAIN DRAWBACKS ARE:----
_________
(1) Measurability of utility:
The law assumes that utility of a commodity can be measured with the measuring rod of money.
(2) Abnormal persons:
The law is not applicable to abnormal persons. If a man is drunkard the more liquor he drinks the more he is tempted to drink.
(3) The law assumes that ‘other things’ must remain constant:
It implies that the habits, tastes, temperament and income of the consumer remain constant for the operation of the law.
(6) The law depends on the supply of the substitutes and complements:
The law does not depend upon the supply of the commodity a consumer consumes but also on its substitutes and complements.
__________
hope it helps⤴
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Law of Diminishing Marginal Utility (Limitations and Exceptions) ADVERTISEMENTS: ... According to the law, when a consumer increases the consumption of a good, there is a decline in MU derived from each successive unit of that good, while keeping the consumption of other goods constant.
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