Question

Explain the law of Diminishing Marginal Utility with the help of a diagram? What are its limitations?

Answer 1

Heya...

Law of Diminishing Marginal Utility ....

It is the law which states that ,, when we consume more and more units of a commodity then the satisfaction driven from extra consumption tends to decline ant be negative and zero also....

It's limitations....

It can not be apply in the case of money...
Money desire can't be reduce with having it more also....

For dia it is Same as the dia of demand curve, slopes downward....

See above attachment...

-- Be Brainly....

Answer 2

It should be carefully noted that is the marginal utility and not the total utility than declines with the increase in the consumption of a good. ... The law of diminishing marginal utility means that the total utility increases but at a decreasing rate.