Question

Write defects of law of diminishing marginal utility?(in easy language)

Answer 1

The Law of Diminishing Marginal Utility directly relates to the concept ofdiminishing prices. As the utility of a product decreases as its consumption increases, consumers are willing to pay smaller dollar amounts for more of the product. For example, assume an individual pays $100 for a vacuum cleaner.

Answer 2

This is a universal law and holds true in the case of physiological, social or artificial wants. It is another thing that in the case of certain commodities the limit of satiety is soon reached, while others take some time.