Economics20825 marksLaw of diminishing marginal utility
Define the law of diminishing marginal utility. Explain its significance with an example.
Define the law of diminishing marginal utility. Explain its significance with an example. [5]
The Law of Diminishing Marginal Utility states that as a consumer consumes successive units of a commodity, the additional satisfaction (marginal utility) derived from each additional unit decreases, assuming all other factors remain constant and the consumer's taste does not change. In other wor...