Question

Explain law of diminishing marginal utility
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Answer 1

Answer:

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

Answer 2

the additional benefit which a person derived from a given increase of his stock of a thing diminished with every increase in stock that we already has.

MEANING: the law says that as a consumer takes more units of a good, the extra satisfaction that we derives from extra unit of a good goes on failing.

STATEMENT OF THE LAW: this law analyses consumers behaviour in case of single good If a person goes on consuming more and more units of a commodity,the additional utility we derives from the additional units of the commodity goes on diminishing.The law explains the relationship between the quantity of goods consumed and the utility derives