Question

Explanation of law of diminishing marginal utility​

Answer 1

The Law of diminishing marginal utility states that the more we consume a particular commodity, the less is the marginal utility of that particular product or commodity.

Some key points for clear understanding:

• The law defines that as we consume more units of  particular commodity, the satisfaction level of consumption goes on decreasing.
• The law simply states that when we get much of any product, the want to get it more goes on declining.
• The desire to consume variety of food products is the common example to understand the law of diminishing marginal utility. The more you consume a particular food when starved, the less you want it after well fed.

The diagram given below will help to understand the concept more clearly: