state and explain the law of diminishing marginal utility. explain its assumptions?
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Law of diminishing marginal utility states that as more and more units of community are consumed marginal utility derived from every additional units must decline .
Assumption:
1. Only standard unit of the commodity are consumed . Like a cup of tea not a spoon of tea .
2. Consumption Of the commodity is continuous . Not that one unit of the commodity is consumed and now and the other tomorrow .
Law of diminishing marginal utility states that as more and more units of community are consumed marginal utility derived from every additional units must decline .
Assumption:
1. Only standard unit of the commodity are consumed . Like a cup of tea not a spoon of tea .
2. Consumption Of the commodity is continuous . Not that one unit of the commodity is consumed and now and the other tomorrow .
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