explain with illustration the law of eventual dimnishing marginal utility?
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DEFINITION :
The additional benefit which a person derives from the given increased of his stock of a thing diminishes with every increased in the stock that he already has - Alfred marshall
ASSUMPTIONS :
1) consumer is the rational man
2)cardinal measurement of utility
3)marginal utility of money remains constant
4)all utilities are independent
5)the hypothesis of independent utilities
The additional benefit which a person derives from the given increased of his stock of a thing diminishes with every increased in the stock that he already has - Alfred marshall
ASSUMPTIONS :
1) consumer is the rational man
2)cardinal measurement of utility
3)marginal utility of money remains constant
4)all utilities are independent
5)the hypothesis of independent utilities
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