Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
745 views
in Economics by (25 points)

Please log in or register to answer this question.

1 Answer

0 votes
by (26.1k points)
edited by

‘Other things remaining the same, when a person takes successive units of a commodity, the marginal utility diminishes constantly.’ 

The marginal utility of a commodity diminishes at the consumer gets larger quantities of it. Marginal utility is the change in the total utility resulting from one unit change in the consumption of a commodity per unit of time.

Assumptions :

Followings are the some assumptions of the law of diminishing marginal utility : 

(i) It is assumed that utility can be measured and a consumer can express his satisfaction in quantitative terms such as 1, 2, 3... etc. 

(ii) Consumption of reasonable quantity. 

(iii) Continuous consumption. 

(iv) Monetary measurement of utility. 

(v) No change in quantity. 

(vi) Rational consumer. 

(vii) MU of money remains constant. 

(viii)Independent utilities. 

(ix) Fixed income price.

This law can be explained with the help of the above schedule and diagram:

No. of Units cosumed Oranges TU MU
1. 12 12
2. 20 8
3. 26 6
4. 30 4
5. 30 0
6. 28 -2

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...