What do you mean by Law of Equi Marginal Utlility
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Law of Equi Marginal Utility: ... It is also known as law of maximum satisfaction orlaw of substitution or Gossen's second law. A consumer has number of wants. He tries to spend limited income on different things in such a way that marginal utility of all things is equal.
Law of Equi Marginal Utility: ... It is also known as law of maximum satisfaction orlaw of substitution or Gossen's second law. A consumer has number of wants. He tries to spend limited income on different things in such a way that marginal utility of all things is equal.
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The law of equi-marginal utility states that the consumer will distribute his money income between the goods in such a way that the utility derived from the last rupee spend on each good is equal. In other words, consumer is in equilibrium position when marginal utility of money expenditure on each goods is the same.
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